NZD/USD Technical Analysis: Channel Top Tested Anew
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- NZD/USD Technical Strategy: Flat
- Support: 0.6563, 0.6497, 0.6409
- Resistance:0.6679, 0.6791, 0.6973
The New Zealand Dollar corrected lower after attempting a break to the topside against its US namesake. 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 0.6563 clears the way for a challenge of the July 16 low at 0.6497.
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.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com