NZD/USD Technical Analysis: Stalling Under October High
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- NZD/USD Technical Strategy: Flat
- Support: 0.7831, 0.7682, 0.7583
- Resistance:0.7937, 0.8034, 0.8109
The New Zealand Dollar advanced as expected against its US counterpart having produced a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.7937, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the October 21 high at 0.8034. Alternatively, a turn below the 14.6% level at 0.7831 clears the way for a challenge of the July 2013 bottom at 0.7682.
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