NZD/USD Technical Analysis: Consolidating Gains Above 0.88

By DailyFx | July 10, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8805, 0.8766-79, 0.8737
  • Resistance:0.8842, 0.8862, 0.8884

The New Zealand Dollar paused to consolidate gains after rising to the strongest level in three years against its US namesake. Resistance is now in the 0.8842-62 area, marked by a key swing high from August 2011 and the 38.2% Fibonacci expansion. This barrier is bolstered by the top of a rising channel at 0.8884. A daily close above the latter level exposes the 50% Fib at 0.8909. Alternatively, a reversal below the 23.6% Fib at 0.8805 aims for resistance-turned-support at 0.8779 – the May 6 high – followed by channel bottom at 0.8766.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more attractive opportunity to emerge.

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

NZD/USD Technical Analysis: Consolidating Gains Above 0.88

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. NZD/USD Remains Vulnerable Amid Lack Of Reversal Signals
    Forex News

    NZD/USD Remains Vulnerable Amid Lack Of Reversal Signals

  2. British Pound Could Close Out Week with a Bang on UK GDP
    Forex News

    British Pound Could Close Out Week with a Bang on UK GDP

  3. NZD/USD Technical Analysis: Kiwi Down Trend Restarted
    Forex News

    NZD/USD Technical Analysis: Kiwi Down Trend Restarted

  4. NZD/USD Next Leg Lower Underway
    Forex News

    NZD/USD Next Leg Lower Underway

  5. US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen
    Forex News

    US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen

Trading Center