NZD/USD Technical Analysis: Support Found Below 0.76
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- NZD/USD Technical Strategy: Flat
- Support: 0.7582, 0.7519, 0.7450
- Resistance:0.7658, 0.7721, 0.7799
The New Zealand Dollar is consolidating losses after being rejected downward at the March swing high against its US namesake. A daily close below the 0.7582-95 area (horizontal pivot, 38.2% Fibonacci expansion) exposes 0.7519 (38.2% Fib retracement, rising trend line). Alternatively, a reversal above the 0.7647-58 area (December 8 2014 close, 50% expansion) clears the way for a challenge of the 50% level at 0.7721.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com