NZD/USD Technical Analysis: Trend Line Barrier in Focus
To receive Ilya's analysis directly via email, please SIGN UP HERE
- 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.