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NZD/USD Technical Analysis: 19-Month Resistance Under Fire

NZD/USD Technical Analysis: 19-Month Resistance Under Fire

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • New Zealand Dollar moves to challenge 19-month resistance vs. US counterpart
  • Looking for actionable confirmation of bearish reversal to initiate short position

The New Zealand Dollar finds itself at trend-setting resistance that has capped gains versus the currency’s US counterpart since early July 2014. The pair’s behavior at this critical juncture may prove defining for trend development in the weeks and months ahead.

A daily close above the 76.4% Fibonacci retracement at 0.6757 opens the door for a test double top resistance in the 0.6883-97 area. Alternatively, move back below the 61.8% Fib at 0.6678 paves the way for a challenge of the 50% level at 0.6615.

We are keen to enter short NZD/USD in line with the long-term downward trajectory. An actionable reversal signal triggering the position is absent for the time being however. With that in mind, we will remain on the sidelines until a compelling setup presents itself.

Does the NZD/USD chart setup agree with our 2016 outlook? Find out here!

NZD/USD Technical Analysis: 19-Month Resistance Under Fire

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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