NZD/USD Technical Analysis: June Low Under Fire Anew
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- NZD/USD Technical Strategy: Flat
- Support: 0.8470, 0.8508-25, 0.8571
- Resistance:0.8509-22, 0.8571, 0.8621
The New Zealand Dollar moved lower anew against its US counterpart, with sellers taking aim at the 0.84 figure once again. A daily close below the 0.8401-13 area, marked by the 23.6% Fibonacci expansion and the June 4 low, exposes the 38.2% level at 0.8350. Alternatively, a reversal above the 14.6% Fib retracement at 0.8470 clears the way for a challenge of the 0.8508-25 zone bracketed by the 23.6% threshold and rising trend line support-turned-resistance set from August 2013.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com