NZD/USD Technical Analysis: Passing on Short Trade Setup
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- NZD/USD Technical Strategy: Flat
- Support: 0.7406, 0.7332, 0.7246
- Resistance:0.7524, 0.7616, 0.7696
The New Zealand Dollar may be resuming the down trend against its US counterpart after recoiling from a trend line capping gains since late October. 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 0.7590-0.7616 zone (14.6% expansion, trend line).
While entering short seems compelling from a purely technical perspective, we will tactically opt to stand aside for now. The upcoming release of minutes from the March FOMC meeting represents significant event risk that may materially alter positioning.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com