NZD/USD Technical Analysis: Digesting Losses Below 0.85

By DailyFx | Updated August 06, 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, 0.8592, 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 0.8592.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests entering long is premature. With that in mind, we will remain flat for now.

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

NZD/USD Technical Analysis: Digesting Losses Below 0.85

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: A Top in Place Above 0.76?

  2. Forex News

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

  3. Forex News

    NZD/USD Technical Analysis: Capped Below February High

  4. Forex News

    2 Reasons NZD/USD Could Be a Buy

  5. Forex News

    NZD/USD Technical Analysis: Rally Falters Above 0.76 Mark

Trading Center