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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.8470, 0.8401, 0.8350
- Resistance:0.8509-18, 0.8571, 0.8621
The New Zealand Dollar advanced against its US namesake after producing a bullish Piercing Line candlestick pattern. A daily close above the 0.8509-18 area, marked rising trend line resistance-turned-support set from August 2013 and the 23.6% Fibonacci retracement, exposes the 38.2% level at 0.8571. Alternatively, a reversal below the 14.6% Fib at 0.8470 clears the way for a challenge of the June 4 low at 0.8401.
The available trading range is too narrow to justify taking a short or a long position at current levels from a risk/reward perspective. We will remain flat for now, waiting for a more attractive opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
