NZD/USD Technical Analysis: Recovery Seen as Corrective
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- NZD/USD Technical Strategy: Flat
- Support: 0.7340, 0.7256, 0.7171
- Resistance:0.7444, 0.7508, 0.7608,
The New Zealand Dollar launched a recovery against its US counterpart, putting in the largest daily advance in two months. Near-term resistance is at 0.7444, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 14.6% level at 0.7508.Alternatively, a reversal below the 38.2% Fibat 0.7340 opens the door for a challenge of the 50% expansion at 0.7256.
We see the dominant NZDUSD trend as bearish. As such, we will treat any on-coming gains as corrective, looking to enter short at a more attractive level rather than a seeing the move higher as a buying opportunity. In the meantime, we remain flat.
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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.