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Talking Points:
- NZD/USD Technical Strategy:Flat
- Support: 0.7448, 0.7344, 0.7280
- Resistance:0.7492, 0.7532, 0.7616
The New Zealand Dollar continues to rise against its US counterpart having launched a recovery after producing in a bullish Morning Star candlestick pattern. A daily close above channel floor support-turned-resistance at 0.7492 exposes the 50% Fibonacci retracement at 0.7532. Alternatively, a move below the 23.6% Fib at 0.7344 clears the way for a test of the 14.6% retracement at 0.7280.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish 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
