NZD/USD Technical Analysis: Support at 0.64 Holds Again
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- NZD/USD Technical Strategy: Flat
- New Zealand Dollar posts largest daily advance in 11 months vs. US Dollar
- Waiting for bounce to offer actionable short setup in line with long-term trend
The New Zealand Dollar produced the largest daily rally in nearly 11 months against its US counterpart, breaking out of its two-week range to breach the 0.66 figure. The move higher marks the second time in four months that a sharp bearish push failed to make headway beyond the 0.64 mark.
From here, a daily close above the 61.8% Fibonacci retracement at 0.6678 opens the door for a challenge of the 76.4% level at 0.6757. Alternatively, a reversal below the 50% Fib at 0.6615 paves the way for a test of the 38.2% retracement at 0.6552.
The dominant long-term NZD/USDtrend continues to favor the downside, painting the latest upswing as corrective. Entering short here lacks confirmation absent an actionable reversal signal however. With that in mind, we will stand aside for now and wait for an attractive selling opportunity to present itself.
Do the charts agree with our 2016 fundamental outlook? Find out here!
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