NZD/USD Technical Analysis: Resistance Above 0.72 in Focus
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- NZD/USD Technical Strategy: Flat
- Support: 0.7043, 0.6945, 0.6866
- Resistance:0.7233, 0.7331, 0.7409
The New Zealand Dollar be carving out a bottom against its US counterpart following the formation of a bullish Morning Star pattern. Near-term resistance is at 0.7233, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.7331. Alternatively, a turn back below the 0.7043-76 area (June 1 low, 23.6% Fib expansion) opens the door for a test of the 38.2% threshold at 0.6945.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.