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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7299, 0.7237, 0.7136
- Resistance:0.7349, 0.7400, 0.7462
The New Zealand continues to be battered by selling pressure, with prices probing below the 0.73 figure against its US counterpart. Near-term support is at 0.7299, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 0.7237. Alternatively, a return above the 50% Fib at 0.7349 opens the door for a test of the 38.2% expansion at 0.7400.
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
