NZD/USD Technical Analysis: Kiwi Selloff May Be Resuming
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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 be resuming the down trend against its US counterpart having seemingly overturned the bounce from November lows. Near-term support is at 0.7831, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 0.7682-96 area marked by the July 2013 bottom and the 23.6% Fib expansion. Alternatively, a reversal above the 23.6% retracement at 0.7937 clears the way for a challenge of the October 21 high at 0.8034.
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