NZD/USD Technical Analysis: Kiwi Slumps to July Bottom
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- NZD/USD Technical Strategy: Flat
- Support: 0.6443, 0.6261, 0.6114
- Resistance:0.6556, 0.6679, 0.6791
The New Zealand Dollar is testing July’s lows against its US counterpart after a would-be rebound was rejected below the 0.67 figure. Near-term support is in the 0.6443-97 area (23.6% Fibonacci expansion, July 16 low), with a break below that on a daily closing basis exposing the 38.2% level at 0.6261. Alternatively, a reversal above the 14.6% expansion at 0.6556 opens the door for a test of the 14.6% Fib retracement at 0.6679.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com