NZD/USD Technical Analysis: Kiwi Jumps to 15-Month High
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- NZD/USD Technical Strategy: Flat
- Kiwi Dollar jumps to 15-month high following RBNZ rate decision
- Breakout confirmation lacking absent close above late-June high
The New Zealand Dollar spiked to the highest level in 15 months against its US counterpart following the RBNZ monetary policy announcement. Confirmation of a sustained break upward beyond resistance in play since late June remains absent for now however.
From here, a daily close above the June 24 high at 0.7298 opens the door for a challenge of the 61.8% Fibonacci expansion at 0.7353. Alternatively, a move back below falling trend line resistance-turned-support at 0.7224 paves the way for a test of a horizontal pivot at 0.7102.
Prices are too close to resistance to justify entering a long trade from a risk/reward perspective. On the other hand, the absence of a clearly-defined bearish reversal signal suggests taking up the short side is premature. With that in mind, opting for the sidelines seems prudent until something more tangible emerges.