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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.6568, 0.6458, 0.6349
- Resistance:0.6783, 0.6885, 0.7049
The New Zealand Dollar is attempting to launch a recovery from the bottom of a channel set from April, rising the most in a month against its US namesake. Near-term resistance is at 0.6783, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing 0.6885 (23.6% level, channel top). Alternatively, a push below 0.6568 (channel floor, 38.2% Fib expansion) opens the door for a test of the 50% threshold at 0.6458.
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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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
