NZD/USD Technical Analysis: Clinging to Channel Support
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- NZD/USD Technical Strategy: Flat
- Support: 0.6628, 0.6568, 0.6458
- Resistance:0.6704, 0.6787, 0.6923
The New Zealand Dollar continues to test the bottom of a falling channel capping losses against its US counterpart since late April. Near-term channel support is at 0.6628, with a break below that on a daily closing basis exposing the 38.2% Fibonacci expansion at 0.6568. Alternatively, a turn back above the 23.6% level at 0.6704 opens the door for a test of the 14.6% Fib at 0.6787.
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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--- 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.