NZD/USD Technical Analysis: 18-Month Support Broken
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- NZD/USD Technical Strategy:Flat
- Support: 0.7625, 0.7525, 0.7386
- Resistance:0.7696,0.7802, 0.7932
The New Zealand Dollar may have marked a pivotal reversal against its US counterpart after prices breached support dating back to June 2013. Near-term channel floor support is at 0.7625, with a break below that on a daily closing basis exposing the 38.2% Fibonacci expansion at 0.7525.Alternatively, a turn above the 0.7682-96 area marked by the 23.6% Fib and the June 24 2013 low clears the way for a challenge of the 14.6% expansion at 0.7802.
The available trading range is too narrow to justify a long or short position at current levels from a risk/reward perspective. With that in mind, we will remain on the sidelines for now until an actionable opportunity presents 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.