NZD/USD Technical Analysis: Passing on Entering Short Trade
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- NZD/USD Technical Strategy: Flat
- Support: 0.7998, 0.7887, 0.7798
- Resistance:0.8067, 0.8189, 0.8229
The New Zealand Dollar appears vulnerable to deeper losses against its US counterpart after sliding to the weakest level in over a year. A daily close below the 23.6% Fibonacci expansion at 0.7998 exposes the 38.2% mark at 0.7887. Alternatively, a turn back above the 14.6% Fib at 0.8067 clears the way for a challenge of falling trend line resistance at 0.8189.
While entering short is a tempting proposition, positive RSI divergence warns of ebbing downside momentum and hints that a reversal higher may emerge around the corner. With that in mind, we will opt to remain flat and wait for a more compelling opportunity.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com