NZD/USD Technical Analysis: Edging Along Channel Floor
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- NZD/USD Technical Strategy: Flat
- Support: 0.6647, 0.6568, 0.6458
- Resistance:0.6704, 0.6787, 0.6923
The New Zealand Dollar continues to edge lower along the bottom of a channel that has guided prices lower since April against its US counterpart. A daily close below channel floor support at 0.6647 exposes the 38.2% level at 0.6568. Alternatively, a move above the 14.6% Fib at 0.6787 clears the way for a test of the June 25 high at 0.6923.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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--- 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.