NZD/USD Technical Analysis: Familiar Support in Play Again
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.7767, 0.7682, 0.7602
- Resistance:0.7948, 0.8051, 0.8138
The New Zealand Dollar paused at familiar support against its US counterpart after seemingly returning to last week’s bear trend resumption. 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 0.7948 opens the door for a retest of the February 2014 low at 0.8051.
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