NZD/USD Technical Analysis: Bounce Rejected at Resistance
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- NZD/USD Technical Strategy: Flat
- Support: 0.7767, 0.7682, 0.7602
- Resistance:0.7937, 0.8051, 0.8138
The New Zealand Dollar turned lower anew following a corrective bounce against its US namesake, with prices seemingly returning to last week’s bear trend resumption. Near-term support is at 0.7767, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.7682-7707 area marked by the July 2013 and September 2014 lows. Alternatively, a rebound above Flag bottom support-turned-resistance at 0.7937 clears the way for a challenge of the February 2014 low at 0.8051.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com