NZD/USD Technical Analysis: Ready to Resume Down Trend?
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- 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.
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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.