NZD/USD Technical Analysis: Ready to Resume Down Trend?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.7869, 0.7767, 0.7682
- Resistance:0.8051, 0.8138, 0.8271
The New Zealand Dollar is poised to renew the down trend against its US counterpart as prices threaten to overturn the bounce from September’s low. A daily close below 0.7869, the intersection of a channel floor and the 14.6% Fibonacci expansion, exposes the 23.6% level at 0.7767. Alternatively, a reversal above the intersection of the channel top and the February 2014 low at 0.8051 opens the door for a test of the 38.2% Fib retracement at 0.8138
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 that taking up the long side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com