NZD/USD Technical Analysis: Attempting to Regain Footing
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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 rebounded against its US counterpart after finding support below the 0.76 figure. Near-term support is in the 0.7582-95 area (horizontal pivot, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing 0.7519 (38.2% Fib retracement, rising trend line). Alternatively, a turn above the 0.7647-58 area (December 8 2014 close, 50% expansion) opens the door for a test of the 50% level at 0.7721.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.