NZD/USD Technical Analysis: Testing Resistance Below 0.67
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- NZD/USD Technical Strategy: Flat
- Support: 0.6598, 0.6497, 0.6318
- Resistance:0.6679, 0.6791, 0.6973
The New Zealand Dollar is trying to edge upward against its US counterpart after producing a bullish Morning Star candlestick pattern. A daily close above the 14.6% Fibonacci retracementat 0.6679 exposes the 23.6% level at 0.6791. Alternatively, a move below channel resistance-turned-support at 0.6601 clears the way for a challenge of the July 16 low at 0.6497.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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.