NZD/USD Technical Analysis: Down Trend Back in Play?
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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 may have resumed the down trend against its US namesake after prices violated the series of higher highs and higher lows set from early November. A daily close below the 14.6% Fibonacci retracement at 0.7831 exposes the 0.7682-96 area marked by the July 2013 bottom and the 23.6% Fib expansion. Alternatively, a turn above the 23.6% retracement at 0.7937 opens the door for a test of the October 21 high at 0.8034.
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