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Talking Points:
- NZD/USD Technical Strategy:Flat
- Support: 0.7344, 0.7280, 0.7175
- Resistance:0.7448, 0.7532, 0.7616
The New Zealand Dollar pausing to digest the advance against its US namesake having pushed higher after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7448, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.7504-32 area (channel floor, 50% level). Alternatively, a turn below the 23.6% Fib at 0.7344 opens the door for a challenge of the 14.6% retracement at 0.7280.
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
