NZD/USD Technical Analysis: Five-Month Trend Challenged
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- NZD/USD Technical Strategy: Flat
- Support: 0.7556, 0.7406, 0.7161
- Resistance:0.7657, 0.7801, 0.7998
The New Zealand Dollar continues to push higher against its US namesake, with prices testing resistance capping gains over the past five months. A daily close above a falling trend line at 0.7657 exposes the 38.2% Fibonacci retracement at 0.7801.Alternatively, a turn below the0.7556-608 area (December 9 low, 23.6% level) clears the way for a challenge of the 14.6% Fib at 0.7406.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.