DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8658-69, 0.8618, 0.8567
  • Resistance:0.8733, 0.8779-93, 0.8835-42

The New Zealand Dollar has stopped to catch its breath after last week’s aggressive selloff against the US Dollar ahead of the RBNZ policy announcement. Near-term support is in the 0.8658-69 area, marked by the 38.2% Fibonacci retracement and the June 17 close. A break below this barrier on a daily closing basis initially exposes the 50% level at 0.8618. Alternatively, a reversal above the 23.6% Fibat 0.8733 opens the door for a test of the 0.8779-93 zone, bracketed by the May 6 and June 27 swing highs.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. 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 0.87

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Strategy Video: Am I Over or Under Trading, And How Do I Correct It?

  2. Forex News

    Monetary Policy Speculation Continues Next Week With NFPs, RBA and BoE

  3. Forex News

    NZD/USD Technical Analysis: Rebound Falters at Resistance

  4. Forex News

    Dollar Rising on Back of GDP and FOMC but Not Enough for Breakout

  5. Forex News

    Video: A Clean NZDUSD Technical View Awaits Fundamental Confirmation

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!