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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7602, 0.7521, 0.7452
- Resistance:0.7709, 0.7756, 0.7825
The New Zealand Dollar may be readying to turn lower against its US namesake after prices put in a bearish Three Inside Down candlestick pattern. A daily close below trend line support at 0.7602 exposes the 38.2% Fibonacci retracement at 0.7521. Alternatively, a turn above trend line resistance at 0.7709 clears the way for a challenge of the 38.2% Fib expansion at 0.7756.
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
