NZD/USD Technical Analysis: Facing Critical Resistance
NZD/USD Talking Points:
- The New Zealand Dollar is slowly making progress to the upside after a bullish reversal pattern
- Ahead, NZD/USD faces critical resistance around 0.7404 followed by the September 2017 high
- If prices turn lower, 0.7308 could end up as near-term support followed by the 14.6% minor Fib
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The New Zealand Dollar continues to make progress to the upside against its US counterpart as expected. NZD/USD has pushed higher after it formed a falling wedge bullish reversal pattern. However, progress higher has been a bit slow as it approaches key near-term resistance. That is the 38.2% Fibonacci extension around 0.7404.
It should be noted that this area is the place where NZD/USD got stuck under when it tried to close above it late-January and mid-February. If the pair is unable to push above near-term resistance, then there could be the potential of a triple top bearish reversal pattern to form. In addition, beyond that lies 0.7437 which is the September 2017 high and horizontal resistance.
A break above that line exposes the 50% midpoint at 0.7482. On the other hand, if prices turn lower the 23.6% extension could stand in the way as near-term support. A push below that exposes the 14.6% minor level at 0.7249. Keep in mind that the upper line of the falling wedge could come back as former resistance new support.
NZD/USD Trading Resources:
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- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com
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