NZD/USD Technical Analysis: Kiwi Snaps 2-Month Channel Top
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- NZD/USD Technical Strategy: Flat
- Kiwi Dollar channel top break hints at further gains vs. US cousin
- Breakout confirmation still needed on double top resistance breach
The New Zealand Dollar has broken above channel resistance guiding prices lower over the past two months, hinting at further gains on the horizon. The pair must still negotiate double top resistance before the case for near term follow-through looks compelling however.
A daily close above 0.7054, a barrier that contained the upside since late March, opens the door for a challenge of support-turned-resistance at 0.7135. Alternatively, a reversal back below the channel top – now at 0.7006 – paves the way for a retest of support in the 0.6931-44 congestion area.
While the bullish argument has undeniably strengthened in recent days, the absence of breakout confirmation argues against entering long. On the other hand, prices would need to produce compelling evidence of bearish reversal to contemplate taking up the short side. Taken together, this argues in favor of staying flat.