NZD/USD Technical Analysis: Ready to Move Below 0.70?
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- NZD/USD Technical Strategy: Flat
- Support: 0.6945, 0.6866, 0.6787
- Resistance:0.7043, 0.7103, 0.7170
The New Zealand Dollar looks to be aiming below the 0.70 figure against its US counterpart after clearing another level of chart support. Near-term support is now at 0.6945, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.6866. Alternatively, a move back above the 23.6% Fib at 0.7043 opens the door for a test of the 14.6% expansion at 0.7103.
Positive RSI divergence warns of ebbing downside momentum and hints a reversal upward may be in the cards, arguing against a short position. Furthermore, the upcoming RBNZ monetary policy announcement represents event risk that may disrupt positioning. 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.