NZD/USD Technical Analysis – Rally Pauses Below 0.88 Mark

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8690, 0.8634, 0.8590
  • Resistance:0.8745, 0.8779, 0.8851

The New Zealand Dollar has paused to digest gains after jumping to a six-week high against its US counterpart yesterday. Resistance remains in the 0.8745-79 area, bracketed by the April 10 and May 6 highs. A daily close above this barrier initially targets the 61.8% Fibonacci expansion at 0.8851. Support lines up at 0.8690, the 76.4% Fib retracement. A turn below that clears the way for a test of the 61.8% retracement at 0.8634.

The appearance of negative RSI divergence warns of ebbing upward momentum and hints a reversal downward may be ahead. The absence of a clearly defined bearish signal suggests entering short is premature for now however and we will continue to stand aside.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

NZD/USD Technical Analysis – Rally Pauses Below 0.88 Mark

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    Yen Down on Risk Appetite Swell But Year-End Flows May Fuel Turn

  2. Forex News

    NZD/USD Technical Analysis: Waiting for Direction Cues

  3. Forex News

    US Dollar Once Again Looks like a Buy versus Euro, Major Currencies

  4. Forex News

    New Zealand Dollar Reversal is Short-Lived

  5. Forex News

    Swiss Franc Sinks as SNB Surprises with Negative Interest Rates

Trading Center