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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7294, 0.7187, 0.7016
- Resistance:0.7380, 0.7465, 0.7572
The New Zealand Dollar turned downward against its US counterpart as expected after forming a bearish Three Inside Down candlestick pattern. Near-term support is at 0.7294, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 0.7187. Alternatively, a reversal above the 50% Fib at 0.7465 opens the door for a test of the 0.7447-65 area (support-turned-resistance shelf, 38.2% expansion).
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
