NZD/USD Technical Analysis: Kiwi Rallies Most in 3 Years
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- NZD/USD Technical Strategy: Flat
- Support: 0.7406, 0.7277, 0.7161
- Resistance:0.7556, 0.7801, 0.7998
The New Zealand Dollar launched a sharp recovery against its US namesake, issuing the largest advance in over three years. Near-term resistance is in the 0.7521-56 area (Triangle top, trend line support-turned-resistance, 23.6% Fibonacci retracement), with a break above that on a daily closing basis exposing the 38.2% level at 0.7801.Alternatively, a reversal below the14.6% Fib at 0.7406 opens the door for a test of Triangle support at 0.7277.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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