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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7517, 0.7468, 0.7406
- Resistance:0.7595, 0.7623, 0.7658
The New Zealand Dollar continues to recover against its US counterpart after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7595, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing a falling trend line at 0.7623. Alternatively, a reversal below the 23.6% Fib at 0.7517 opens the door for a test of the 14.6% expansion at 0.7468.
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
