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- NZD/USD Technical Strategy: Flat
- Support: 0.8737, 0.8710, 0.8651
- Resistance:0.8842, 0.8862, 0.8878
The New Zealand Dollar extended the advance against its US counterpart as expected, moving to the highest level in three years. Buyers now aim to challenge resistance in the 0.8842-62 area, marked by a major high dating back to August 2011 and the 38.2% Fibonacci expansion. This region is further reinforced by the top of a rising channel at 0.8878. A daily close above the latter level exposes the 50% Fib at 0.8909. Alternatively, a reversal below the 23.6% Fib at 0.8805 aims for resistance-turned-support at 0.8779 – the May 6 high – followed by channel bottom at 0.8758.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, looking for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0