NZD/USD Technical Analysis: Support Below 0.77 Targeted
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- NZD/USD Technical Strategy:Flat
- Support: 0.7691, 0.7580, 0.7401
- Resistance:0.7863, 0.7974, 0.8034
The New Zealand Dollar continues to pull back against its US counterpart, gradually erasing the upswing following last week’s RBNZ monetary policy announcement. Near-term support is at 0.7691, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the intersection of channel floor support and the 23.6% level at 0.7580. Alternatively, a break above channel top resistance at 0.7863 clears the way for a challenge of the November 17 high at 0.7974.
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.