NZD/USD Technical Analysis: 6-Week Trend Line Challenged
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- NZD/USD Technical Strategy: Flat
- Support: 0.7593, 0.7521, 0.7452
- Resistance:0.7756, 0.7825, 0.7893
The New Zealand Dollar pulled back to test the bounds of the move higher against its US counterpart established from mid-March. Near-term trend line support is at 0.7593, with a break below that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.7521. Alternatively, a move above the 38.2% Fib expansion at 0.7756 opens the door for a test of the 50% level at 0.7825.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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