NZD/USD Technical Analysis: Kiwi Dips to 13-Month Low
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- NZD/USD Technical Strategy: Flat
- Support: 0.7697, 0.7597, 0.7418
- Resistance:0.7798, 0.7887, 0.7998
The New Zealand Dollar continues to face heavy selling pressure, with prices sliding to the lowest level in 13 months. Near-term support is in the 0.7697-0.7708 area, marked by the July 2013 bottom and the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% mark at 0.7597. Alternatively, a turn back above the 50% Fib at 0.7798 opens the door for a test of the 38.2% expansion at 0.7887.
Entering short seems compelling from a technical and a risk/reward perspective but we will opt to pass on the setup. The July 2013 bottom near the 0.77 figure represents a major inflection point and we would prefer to see a conclusive break below that before committing to a trade.
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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.