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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7556, 0.7406, 0.7161
- Resistance:0.7653, 0.7801, 0.7998
The New Zealand Dollar paused to digest gains against its US counterpart after pushing up against the upper boundary of a five-month downtrend. Near-term trend line resistance is at 0.7653, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.7801.Alternatively, a reversal below the0.7556-608 area (December 9 low, 23.6% level) opens the door for a test of the 14.6% Fib at 0.7406.
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
