NZD/USD Technical Analysis: Downward Momentum Ebbing?
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- NZD/USD Technical Strategy: Flat
- Support: 0.7299, 0.7237, 0.7136
- Resistance:0.7349, 0.7400, 0.7462
The New Zealand is still treading water against its US namesake having descended to the lowest level in two months. A daily close below the 61.8% Fibonacci expansionat 0.7299 exposes the 76.4% level at 0.7237. Alternatively, a rebound above the 50% Fib at 0.7349 clears the way for a challenge of the 38.2% expansion at 0.7400. Positive RSI divergence hints a bounce may be in the cards, however.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com