NZD/USD Technical Analysis: Channel Floor Still Holding
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.6616, 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 0.6616 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- 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.