NZD/USD Technical Analysis: 3-Month Trend Line in Focus
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- NZD/USD Technical Strategy: Flat
- Kiwi Dollar Moves to Challenge Three-Month Trend Line Resistance
- Waiting for Actionable Bearish Reversal Signal to Enter Short Trade
The New Zealand Dollar pushed upward for a fourth consecutive day against its US namesake, rising to the strongest level in six weeks. Prices are now testing pivotal falling trend line resistance that has capped the upside since early July, withstanding two prior bullish challenges.
Trend line resistance is now at 0.6638, with a break above that on a daily closing basis opening the door for a challenge of the 38.2% Fibonacci retracement at 0.6787. Alternatively, move back below a horizontal support and former range floor at 0.6497 clears the way for a test of a latter range top at 0.6408.
We have been waiting to re-enter a short NZDUSD position since our last attempt at re-entering the long-term down trend proved fruitless. While the trend line represents a logical place for topping, an actionable bearish reversal signal is conspicuously absent at this point. With that in mind, we will continue to stand aside until an actionable setup presents itself.
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