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

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    NZD/USD Technical Analysis: Testing Resistance Below 0.67

  2. Forex News

    Fed Doesn’t Relieve Anxiety, GDP Will Take Shot at Dollar and Equities

  3. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

  4. Forex News

    US Dollar Likely to Rise After FOMC Policy Announcement

  5. Forex News

    FOMC Decision Holds Reins on Dollar and SPX, Pound Mixed after GDP

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!