NZD/USD Technical Strategy: FLAT
- New Zealand Dollar rebound rejected at six-month trend resistance
- Sellers struggling to sustain follow-through above 0.65 vs US Dollar
- Waiting for an actionable setup to trade with dominant bearish bias
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The New Zealand Dollar pulled back from resistance marking the downward trend against its US counterpart since mid-April, as expected. True bearish resumption remains elusive for now however as sellers struggle with initial support at 0.6501.
A daily close below this barrier is likely to clear the way for a retest of October’s swing bottom at 0.6425. Alternatively, a push above trend resistance – now at 0.6553 – would neutralize the immediate bearish bias and open the door for another challenge of support-turned-resistance in the 0.6688-0.6726 area.
On balance, the path of least resistance still seems to favor New Zealand Dollar weakness but current positioning does not appear offer to an actionable trading opportunity. Waiting on the sidelines until such an opening presents itself is probably most prudent.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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