NZD/USD Technical Analysis: Support Sub-0.77 Threatened
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- NZD/USD Technical Strategy: Flat
- Support: 0.7682, 0.7602, 0.7469
- Resistance:0.7767, 0.7869, 0.7968
The New Zealand Dollar continues to push downward against its US counterpart having completed a Flag pattern breakout last week. A daily close below the 0.7682-7707 area marked by the July 2013 and September 2014 lows exposes the 38.2%Fibonacci expansion at 0.7602. Alternatively, a rebound above the 23.6% level at 0.7767 opens the door for a test of the 14.6% Fib at 0.7869.
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