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

By DailyFx | 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

comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC
    Forex News

    New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC

  3. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

  4. NZD/USD Remains Vulnerable Amid Lack Of Reversal Signals
    Forex News

    NZD/USD Remains Vulnerable Amid Lack Of Reversal Signals

  5. British Pound Could Close Out Week with a Bang on UK GDP
    Forex News

    British Pound Could Close Out Week with a Bang on UK GDP

Trading Center