NZD/USD Technical Analysis: Key Channel Support Broken

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8733, 0.8669, 0.8618
  • Resistance:0.8779-93, 0.8835-42, 0.8886

The New Zealand Dollar broke downward against its US counterpart, dropping to the lowest level in a week. Sellers are aiming to test support at 0.8733, the 23.6% Fibonacci retracement, with a daily close below that exposing the 38.2% level at 0.8669. Alternatively, a reversal above resistance in the 0.8779-93 area, marked by the May 6 and June 27 swing highs as well as a broken channel floor, exposes the 0.8835-42 region (major swing high from August 2011, July 10 top).

Risk/reward considerations argue against entering short with prices trading too close to support. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. We will remain flat for now.

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

NZD/USD Technical Analysis: Key Channel Support Broken

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. Forex News

    NZD/USD Bullish Engulfing Pattern Awaiting Confirmation

  2. Forex News

    Euro Vulnerable as German CPI, Draghi Commentary Looms Ahead

  3. Forex News

    Euro Heading Into Turbulent Fundamental Seas

  4. Forex News

    NZD/USD Technical Analysis: Kiwi Rebound Hinted Ahead

  5. Forex News

    NZD/USD Grind Lower May Continue With Key Reversal Signals Lacking

Trading Center