To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
