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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7163, 0.7108, 0.7041
- Resistance:0.7217, 0.7285, 0.7394
The New Zealand resumed the move lower against its US counterpart, with prices probing at the lowest levels in four years. Near-term support is at 0.7163, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.7108. Alternatively, a reversal above the 38.2% Fib at 0.7217 opens the door for a test of the 23.6% expansion at 0.7285.
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
