NZD/USD Technical Analysis: Coiling Up Below 0.70 Figure
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- NZD/USD Technical Strategy: Flat
- Kiwi Dollar stuck in a choppy range below 0.70 vs. US namesake
- Back-to-back false starts, conflicting cues cloud near-term setup
The New Zealand Dollar is coiling up in a choppy range below the 0.70 figure against its US cousin as sellers struggle to build momentum after hitting an 11-month low. A myriad of conflicting cues and false starts makes for clouded near-term positioning.
Near-term support is at 0.6818 (May 11 low, 23.6% Fibonacci expansion), with a break below that on a daily closing basis paving the way for a challenge of the 38.2% level at 0.6737. Alternatively, a push above range resistance at 0.6969 opens the door for a test of double top resistance at 0.7054.
An NZD/USD short position activated at 0.6863 was closed as price action turned choppy below the 0.70 figure. The chart setup remains inconclusive. The overall trend seems to favor weakness but several attempts at building downside momentum have fizzled recently. Opting to stand aside seems prudent for now.
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