NZD/USD Technical Analysis: Digesting Above Trend Support

By DailyFx | August 04, 2014 AAA

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8443, 0.8350, 0.8236
  • Resistance:0.8535, 0.8584, 0.8650

The New Zealand Dollar paused to consolidate losses against its US namesake after turning violently lower amid evolving RBNZ monetary policy expectations. A daily close below support at 0.8443, the intersection of a rising trend line set from September 2013 and the 50%Fibonacci retracement, exposes the 61.8% level at 0.8350.Alternatively, a reversal above the 38.2% Fib at 0.8535 aims for support-turn-resistance at a rising trend line established from January, now at 0.8584.

We are tactically opting to stand aside. Chasing the dramatic selloff played out over recent weeks seems unattractive absent confirmation of continued downside follow-through on a break of longer-term trend line support. With that in mind, we will remain on the sidelines for now.

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NZD/USD Technical Analysis: Digesting Above Trend Support

Daily Chart - Created Using FXCM Marketscope 2.0

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