NZD/USD Technical Analysis: A Top in Place Above 0.76?
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- NZD/USD Technical Strategy:Flat
- Support: 0.7444, 0.7340, 0.7256
- Resistance:0.7508, 0.7534, 0.7613
The New Zealand Dollar is may be resuming its down trend against its US namesake after the formation of a Bearish Engulfing candlestick pattern. Near-term support is at 0.7444, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7340. Alternatively, a turn above the 14.6% Fib at 0.7508 opens the door for a challenge of channel support-turned-resistance at 0.7534.
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