NZD/USD Technical Analysis: Trying to Overcome 0.77 Mark
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- NZD/USD Technical Strategy: Flat
- Support: 0.7597, 0.7494, 0.7406
- Resistance:0.7700, 0.7828, 0.8034
The New Zealand Dollar to secure a foothold above the March swing top near the 0.77 figure against its US counterpart. Near-term resistance is at 0.7700, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 0.7828. Alternatively, a turn below 0.7597 (50% Fib, trend line resistance-turned-support) opens the door for a test of the 38.2% level at 0.7494.
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