NZD/USD Technical Analysis: Selloff Stalls Above 0.74 Mark
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- NZD/USD Technical Strategy: Flat
- Support: 0.7406, 0.7332, 0.7246
- Resistance:0.7524, 0.7590, 0.7630
The New Zealand Dollar moved lower as expected after putting in a bearish Evening Star candlestick pattern. Near-term support is in the 0.7406-18 area (horizontal pivot, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 50% level at 0.7332.Alternatively, a reversal above the 23.6% Fib at 0.7524 opens the door for a test of the 14.6% expansion at 0.7590.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com