NZD/USD Technical Analysis: Six-Month Resistance Holding
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- NZD/USD Technical Strategy: Flat
- Support: 0.7501, 0.7406, 0.7296
- Resistance:0.7595, 0.7658, 0.7721
The New Zealand Dollar remains locked in a range below a falling trend line capping gains against its US counterpart since late October. Near-term resistance is at 0.7595 (38.2% Fibonacci expansion, trend line), with a break above that on a daily closing basis exposing the 50% level at 0.7658. Alternatively, a move below trend line support at 0.7501 opens the door for a test of a horizontal pivot at 0.7406.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.