NZD/USD Technical Analysis: Six-Week Trend Line Broken
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- NZD/USD Technical Strategy: Flat
- Kiwi Dollar breaks near-term trend support, hinting at bearish reversal
- Risk./reward considerations argue against triggering short trade for now
The New Zealand Dollar broke rising trend support set from late July, hinting a downward trend reversal against its US counterpart may be in progress. Follow-through has been limited however, with sellers unable to produce meaningful momentum thus far.
Near-term support is at 0.7214, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis opening the door for a test of the 38.2% level at 0.7111. Alternatively, a recovery above trend line support-turned-resistance at 0.7278 paves the way for a challenge of 0.7325, the July 12 high.
Prices are too close to immediate support to justify entering short from a risk/reward perspective. With that in mind, opting to remain on the sidelines appears prudent for the time being until the pair offers an actionable opportunity to establish exposure.
What do past NZD/USD price patterns hint about current trends? Find out here !
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