NZD/USD Technical Analysis: Still Stuck in Choppy Range
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- 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!
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