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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7256, 0.7171, 0.7067
- Resistance:0.7340, 0.7444, 0.7577
The New Zealand Dollar continues to sink against its US counterpart, with prices establishing a foothold below the 0.73 figure. Near-term support is at 0.7256, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.7171. Alternatively, a reversal above the 38.2% Fib at 0.7340 opens the door for a challenge of the 23.6% expansion at 0.7444.
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
