NZD/USD Technical Analysis: 6-Month Trend Support in the Balance
NZD/USD Technical Strategy: NEUTRAL
- NZ Dollar sellers struggling to breach 6-month trend line support
- Sellers may be eyeing short entries on a daily close below 0.6721
- Triple top break needed to neutralize near-term selling pressure
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The New Zealand Dollar has not made much progress since last week’s dramatic drop against its US namesake. Sellers have attempted to force a breakdown, but a lasting breach of rising trend support guiding the Kiwi higher since early October 2018 lows has been elusive.
Breaking this barrier – now at 0.6760 – sets the stage for an almost immediate challenge of the 0.6686-0.6721 chart inflection area. A further daily close below that may be necessary to both confirm reversal and make for actionable risk/reward parameters for sellers.
In the event of a bounce, the would-be Triple Top in the 0.6939-69 marks pivotal resistance. A break above that – again confirmed on a daily closing basis – would neutralize near-term selling pressure open the door for a recovery beyond the 0.70 figure.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.