NZD/USD Technical Analysis: Clearing Path Below 0.76 Mark?
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- NZD/USD Technical Strategy:Flat
- Support: 0.7659, 0.7525, 0.7386
- Resistance:0.7802, 0.7937, 0.8034
The New Zealand Dollar is attempting to accelerate downward in a bid to clear a path below the 0.76 figure against its US counterpart. Near-term support is in the 0.7659-96 area, marked by the November 7 low and the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposingthe 38.2% level at 0.7525.Alternatively, a reversal above the14.6% Fib at 0.7802clears the way for a challange of the 23.6% Fib retracement at 0.7937.
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
--- 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.