NZD/USD Technical Analysis: Upside Breakout in the Works?
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- NZD/USD Technical Strategy: Flat
- Kiwi Dollar poised to break near-term down trend vs. US counterpart
- Confirmation of an actionable trade setup seems lacking for now
The New Zealand Dollar is poised to break above the confines of a down trend that has guided the currency lower since early November against its US namesake. A breakout would point to further gains but leave the broader long-term bearish intact, at least for the time being.
A daily close above the 0.71 figure, marked by the intersection of a falling trend line and the 38.2% Fibonacci retracement, opens the door for a test of the 50% level at 0.7172. Alternatively, a reversal below resistance-turned-support at 0.7043 sees the next downside barrier at 0.6945.
An actionable trade setup is absent at this point. On one hand, a breach of resistance is yet to be firmly established. On the other, the absence of a clear-cut bearish reversal signal warns against attempting to fade recent gains. Opting to stand aside seems most prudent for now until greater clarity emerges.
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