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NZD/USD Technical Analysis: Still Stuck in Choppy Range

NZD/USD Technical Analysis: Still Stuck in Choppy Range

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • New Zealand Dollar price action still mired in choppy range near 0.67
  • Waiting for actionable trade setup, improved risk/reward parameters

New Zealand Dollar price action against its US namesake remains choppy as the currency oscillates in familiar territory near the 0.67 figure. Broadly speaking, a series of lower highs and lows since mid-October 2015 points to a bearish bias.

Near-term support is at 0.6673, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis opening the door for a test of the 50% level at 0.6611. Alternatively, a reversal above the 23.6% threshold at 0.6750 sees the next upside barrier at 0.6793, the 23.6% Fib expansion.

Entering short in line with our 2016 fundamental outlook is an unattractive proposition at current levels. First, the absence of a clear-cut bearish reversal signal warns committing to exposure is premature. Second, the available trading range is too narrow to justify a trade on risk/reward grounds. As such, we will remain flat and wait for a better opportunity to present itself.

FXCM traders are net-long NZD/USD.Find out what this means for the trend going forward!

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