NZD/USD Technical Analysis: Three-Month Channel Broken
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- NZD/USD Technical Strategy: Flat
- Support: 0.6619, 0.6497, 0.6336
- Resistance:0.6679, 0.6791, 0.6973
The New Zealand Dollar is accelerated upward against its US namesake after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.6679, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.6791. Alternatively, a push below channel top resistance-turned-support at 0.6619 opens the door for a test of the July 16 low at 0.6497.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.