NZD/USD Technical Analysis: Channel Top Resistance Eyed
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- NZD/USD Technical Strategy:Flat
- Support: 0.7680, 0.7554, 0.7401
- Resistance:0.7822, 0.7974, 0.8034
Yesterday’s breakdown proved false as we suspected, with the New Zealand Dollar recoiling back into a familiar range against its US namesake. Near-term support is at 0.7680, the December 18 low, with a break below that on a daily closing basis exposing the intersection of channel floor support and the 23.6% level in the 0.7554-80 area. Alternatively, a break above channel top resistance at 0.7822 clears the way for a challenge of the November 17 high at 0.7974.
An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.
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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.