News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
NZD/USD Technical Analysis: Still Stuck in Choppy Range

NZD/USD Technical Analysis: Still Stuck in Choppy Range

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

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!

NZD/USD Technical Analysis: Still Stuck in Choppy Range

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

DISCLOSURES