NZD/USD Technical Analysis: Double Bottom in the Crosshairs
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- NZD/USD Technical Strategy: Flat
- Support: 0.7136, 0.7035, 0.6972
- Resistance:0.7237, 0.7299, 0.7349
The New Zealand has re-accelerated downward against its US counterpart, moving to challenge critical double bottom support above the 0.71 figure. Near-term support is in the 0.7136-75 area (100% Fibonacci expansion, February 3 low), with a break below that on a daily closing basis exposing the 123.6% level at 7035. Alternatively, a turn back above the 76.4% Fib at 0.7237 opens the door for a test of the 61.8% expansion at 0.7299.
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