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Talking Points:
- NZD/USD Technical Strategy:Flat
- Support: 0.7448, 0.7344, 0.7280
- Resistance:0.7532, 0.7616, 0.7721
The New Zealand Dollar continues to consolidate against its US namesake after rising to the highest level in a month. Near-term resistance is at 0.7532, the intersection of channel support-turned-resistance and the 50% Fibonacci retracement, with a break above that on a daily closing basis exposes the 61.8% level at 0.7616. Alternatively, a reversal back below the 38.2% Fib at 0.7448 opens the door for a challenge of the 23.6% retracement at 0.7344.
The longer-term NZDUSD trend continues to look bearish, suggesting that recent gains as well as any on-coming near-term gains are corrective. With that in mind, we will stand on the sidelines for now and wait for the move to run its course before entering short once a defined bearish signal emerges.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
