NZD/USD Technical Analysis: Digesting Above Trend Support

By DailyFx | Updated August 04, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8443, 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.

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

NZD/USD Technical Analysis: Digesting Above Trend Support

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: Oscillating Above 0.75 Figure

  2. Forex News

    NZD/USD Rally Reverses at December Low (Old Support)

  3. Forex News

    March Forex Seasonality Sees US Dollar Rally Stunted

  4. Forex News

    NZD/USD Technical Analysis: A Top in Place Above 0.76?

  5. Forex News

    NZD/USD Candlestick Analysis: Bounce Extends for 4th Week

Trading Center