NZD/USD Technical Analysis: Passing on Long Trade Setup
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- NZD/USD Technical Strategy:Flat
- Support: 0.7787, 0.7620, 0.7530
- Resistance:0.7918, 0.8076, 0.8221
The New Zealand Dollar paused to digest gains after launching upward in the aftermath of the RBNZ monetary policy announcement. Near-term resistance is in the 0.7897-0.7918area, marked by the 23.6% Fibonacci retracement and a falling channel top, with a break above that on a daily closing basis exposing the 38.2% level at 0.8076. Alternatively, a turn below the 14.6% Fib at 0.7787 clears the way for a challenge of the channel floor at 0.7620.
While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside.The series of lower highs defining the down trend from mid-October remains intact while seasonal profit-taking on risk-linked positions may weigh on the sentiment-sensitive Kiwi and undermine follow-through. We will wait for the bounce to offer a selling opportunity in line with the longer-term trend.
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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.