NZD/USD Technical Analysis: Trying to Renew Down Trend
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- NZD/USD Technical Strategy:Flat
- Support: 0.7469, 0.7405, 0.7301
- Resistance:0.7532, 0.7616, 0.7721
The New Zealand Dollar is attempting to renew its down trend against the US Dollar but follow-through is lacking for the time being. Near-term support is at 0.7469, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 0.7405. Alternatively, a reversal above the intersection of channel support-turned-resistance and the 50% Fib retracementat 0.7532 opens the door for a challenge of the 61.8% threshold at 0.7616..
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.