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Talking Points:
- NZD/USD Technical Strategy:Flat
- Support: 0.7525, 0.7386, 0.7247
- Resistance:0.7696, 0.7802, 0.7974
The New Zealand Dollar looks poised to continue lower against its US namesake after prices broke below November swing bottom. A daily close below the 38.2% Fibonacci expansion at 0.7525exposes the 50% level at 0.7386.Alternatively, a reversal above the0.7659-96 area marked by the 23.6% Fib and the November 7 low opens the door for a test of the 14.6% expansion at 0.7802.
While entering short is tempting from a purely technical perspective, we will tactically opt to stand aside. The upcoming RBNZ monetary policy announcement represents a key bit of fundamental event risk that may unravel technical positioning and we prefer to let that pass before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
