NZD/USD Technical Analysis: Trying to Clear Path Above 0.80
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- NZD/USD Technical Strategy: Flat
- Support: 0.7831, 0.7682, 0.7525
- Resistance:0.7937, 0.8034, 0.8109
The New Zealand Dollar moved higher against its US namesake as expected after prices put in a Bullish Engulfing candlestick pattern. A daily close above the 23.6% Fibonacci retracement at 0.7937 exposes the October 21 high at 0.8034. Alternatively, a reversal below the 14.6% level at 0.7831 opens the door for a test of the 0.7682-96 area marked by the 23.6% Fib expansion and the July 2013 bottom.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.