NZD/USD Technical Analysis: Kiwi Sinks to a 7-Month Low
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- NZD/USD Technical Strategy: Flat
- Support: 0.8187, 0.8086, 0.7985
- Resistance:0.8249, 0.8300, 0.8350
The New Zealand Dollar continues to face selling pressure, with prices sliding to the lowest level in seven months against the US Dollar. A daily close below the intersection of a falling channel floor and the 76.4% Fibonacci expansion at 0.8187 exposes the 100% level at 0.8086. Alternatively, a turn above the 61.8% Fib at 0.8249 clears the way for a challenge of the 50% expansion at 0.8300.
Risk/reward considerations argue against entering short with prices sitting 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.