NZD/USD Technical Analysis: Kiwi Sinks to Five-Month Low
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- NZD/USD Technical Strategy: Flat
- Support: 0.8350, 0.8300, 0.8249
- Resistance:0.8401-13, 0.8451, 0.8514
The New Zealand Dollar dropped past the 0.84 figure against its US counterpart to hit the lowest level in five months. Near-term support is at 0.8350, the 38.2%Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.8300. Alternatively, a turn above the 0.8401-13 area marked by the 23.6% Fib and the June 4 low opens the door for a test of the 14.6% expansion at 0.8451.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.