NZD/USD Technical Analysis: Monthly High Under Pressure
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- NZD/USD Technical Strategy: Flat
- Support: 0.7647, 0.7582, 0.7541
- Resistance:0.7721, 0.7799, 0.7925
The New Zealand Dollar rose for a second dayagainst its namesake, with prices retesting monthly highs. A daily close above the 61.8% Fibonacci expansion at 0.7721 exposes the 76.4% level at 0.7799. Alternatively, a reversal below the 0.7647-58 area (December 8 2014 close, 50% Fib) clears the way for a challenge of the 0.7582-95 zone (March 4 close, 38.2% expansion).
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.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com