NZD/USD Technical Analysis: Kiwi Dollar Selloff Accelerates
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- NZD/USD Technical Strategy: Flat
- Support: 0.7340, 0.7256, 0.7171
- Resistance:0.7444, 0.7551, 0.7608
The New Zealand Dollar accelerated downward against its US counterpart, sliding to the lowest level in a month. Near-term support is at 0.7340, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7256. Alternatively, a reversal above the 23.6% Fib at 0.7444 opens the door for a challenge of channel floor support-turned-resistance at 0.7551.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.