DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8443-60, 0.8350, 0.8236
  • Resistance:0.8535, 0.8604, 0.8650

The New Zealand Dollar remains in digestion mode against its US counterpart as prices come to terms with losses following the RBNZ monetary policy announcement. Near-term support is in the 0.8443-60 area, marked by a rising trend line set from September 2013 and the 50%Fibonacci retracement. Breaking below this barrier on a daily closing basis exposes the 61.8% level at 0.8350. Alternatively, a turn above the 38.2% Fib at 0.8535 clears the way for a challenge of support-turn-resistance at a trend line established from January, now at 0.8604.

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: Still Perched on Trend Support

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    NZD/USD Technical Analysis: Testing Resistance Below 0.67

  2. Forex News

    Fed Doesn’t Relieve Anxiety, GDP Will Take Shot at Dollar and Equities

  3. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

  4. Forex News

    US Dollar Likely to Rise After FOMC Policy Announcement

  5. Forex News

    FOMC Decision Holds Reins on Dollar and SPX, Pound Mixed after GDP

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!