NZD/USD Technical Analysis: Rally Capped at 3-Month High
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.7597, 0.7494, 0.7406
- Resistance:0.7700, 0.7828, 0.8034
The New Zealand Dollar corrected downward against its US namesake after spiking to the highest level in three months. A daily close above the 61.8% Fibonacci retracement at 0.7700 exposes the 76.4% level at 0.7828. Alternatively, a reversal below 0.7597 (50% Fib, trend line resistance-turned-support) clears the way for a challenge of the 38.2% level at 0.7494.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com