NZD/USD Technical Analysis: Selloff Stalls at Key Trend Line

By DailyFx | Updated July 28, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8535, 0.8443, 0.8350
  • Resistance:0.8650, 0.8721, 0.8779

The New Zealand Dollar dropped against the US Dollar after the RBNZ monetary policy announcement to test year-to-date uptrend support. Near-term support is at 0.8535, the intersection of a rising trend line set from January and the 38.2% Fibonacci retracement. Breaking below this barrier on a daily closing basis exposes the 50% level at 0.8443. Alternatively, a turn above the 23.6% Fib at 0.8650 clears the way for a challenge of the 14.6% retracement at 0.8721.

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: Selloff Stalls at Key Trend Line

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. NZD/USD Indecision Endures As Denoted By Dojis On The Daily
    Forex News

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

  2. 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

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

    NZD/USD Technical Analysis: Support Above 0.78 in Focus

  4. NZD/USD Forms a Nice Sell Signal
    Investing

    NZD/USD Forms a Nice Sell Signal

  5. Aussie and NZ Dollars Rise, Yen Drops as China Expands Stimulus
    Forex News

    Aussie and NZ Dollars Rise, Yen Drops as China Expands Stimulus

Trading Center