NZD/USD Technical Analysis: Rebound Seen as Corrective
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- NZD/USD Technical Strategy: Flat
- Support: 0.7767, 0.7682, 0.7602
- Resistance:0.7927, 0.8051, 0.8138
The New Zealand Dollar continued to rebound against its US counterpart but overall positioning suggests the move is corrective after last week’s breakdown. A daily close below the 23.6% Fibonacci expansionat 0.7767 exposes the 0.7682-7707 area marked by the July 2013 and September 2014 lows. Alternatively, a move through channel floor support-turned-resistance at 0.7927 opens the door for a test of the February 2014 low at 0.8051.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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.