NZD/USD Technical Analysis: Bulls Claim Hold on 0.75
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- NZD/USD Technical Strategy: Flat
- Support: 0.7406, 0.7161, 0.7043
- Resistance:0.7564, 0.7801, 0.7998
The New Zealand Dollar is attempting to extend gains after securing a foothold above the 0.75 figure against its US namesake. Near-term resistance is in the 0.7556-64 area (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 February-March lows in the 0.7161-75 region.
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