NZD/USD Technical Analysis – Rally Rejected Below 0.88

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: 0.8737, 0.8700, 0.8643
  • Resistance:0.8779-93, 0.8834, 0.8875

The New Zealand Dollar is edging lower as expected against its US namesake after finding resistance below the 0.88 figure. Sellers are testing 0.8737, marked by resistance-turned support dating back to April and a rising channel bottom. A break below this barrier on a daily closing basis initially exposes the 23.6% Fibonacci retracement at 0.8700. Alternatively, a rebound through the 0.8779-93 zone bracketed by the May 6 high and the 38.2% Fib expansion clears the way for a challenge of the 50% threshold at 0.8834.

Risk/reward considerations argue against entering short with prices sitting in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

NZD/USD Technical Analysis – Rally Rejected Below 0.88

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Investing

    NZD/USD: 0.75 Level too Resistive

  2. Forex News

    Euro May Overlook Soft German CPI Data, Swiss Franc Under Fire

  3. Forex News

    Trading Video: Dollar Reaction to FOMC Reserved, S&P 500 Takes a Hit

  4. Forex News

    Strategy Video: Where Does the Dollar Go From Here?

  5. Forex News

    NZD/USD Technical Analysis: Support Now Below 0.73 Mark

Trading Center