NZD/USD Technical Analysis: Channel Resistance in Focus
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- NZD/USD Technical Strategy:Flat
- Support: 0.7691, 0.7566, 0.7401
- Resistance:0.7835, 0.7974, 0.8034
The New Zealand Dollar advanced for a fourth consecutive day against its US counterpart to test the bounds of the down trend in play since late September. A daily close above falling channel top resistance at 0.7835 exposes the November 17 high at 0.7974. Alternatively, a reversal below the 14.6% Fibonacci expansion at 0.7691 opens the door for a test of the 0.7566-80 area marked by the channel floor and the 23.6% level.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com