NZD/USD Technical Analysis: Struggling to Build Upward
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- NZD/USD Technical Strategy: Flat
- Support: 0.7763, 0.7661, 0.7497
- Resistance:0.7973, 0.8051, 0.8138
The New Zealand Dollar may be carving out a bottom against its US namesake after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is in the 0.7928-73 area, marked by the October 2 high and the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the February 4 low at 0.8051. Alternatively, a turn below the 14.6% Fibexpansion at 0.7763 clears the way for a challenge of the 0.7661-82 area marked by the July 8 2013 low and the 23.6% threshold.
On balance, the dominant trend has favored the downside since early July. With that in mind, we will to wait for any on-coming gains and treat them as a selling opportunity rather than a trade-able bullish setup.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com