NZD/USD Technical Analysis: Readying to Overcome 0.88?

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: 0.8737, 0.8710, 0.8651
  • Resistance:0.8779-93, 0.8834, 0.8875

The New Zealand Dollar may be readying to resume its climb against the US Dollar after a period of consolidation below the 0.88 figure. Near-term resistance is in the 0.8779-93 area, marked by the May 6 high and the 38.2% Fibonacci expansion. A break above that on a daily closing basis exposes the 50% level at 0.8834. Alternatively, a move below the 0.8737-48 zone – bracketed by a horizontal pivot in play since April and a rising channel bottom – opens the door for a test of the 23.6% Fib retracement 0.8710.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short 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: Readying to Overcome 0.88?

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. NZD/USD Maintaining Range; Yet to Confirm AUDUSD Break
    Forex News

    NZD/USD Maintaining Range; Yet to Confirm AUDUSD Break

  2. NZD/USD Indecision Endures As Denoted By Dojis On The Daily
    Forex News

    NZD/USD Indecision Endures As Denoted By Dojis On The Daily

  3. Pound at Risk on Dovish BOE Testimony, Euro to Look Past German GDP
    Forex News

    Pound at Risk on Dovish BOE Testimony, Euro to Look Past German GDP

  4. NZD/USD Technical Analysis: Support Above 0.78 in Focus
    Forex News

    NZD/USD Technical Analysis: Support Above 0.78 in Focus

  5. NZD/USD Forms a Nice Sell Signal
    Investing

    NZD/USD Forms a Nice Sell Signal

Trading Center