NZD/USD Technical Analysis: Still Stuck in Digestion Mode

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: 0.8779-93, 0.8733, 0.8669
  • Resistance:0.8842-62, 0.8896-0.8909, 0.8955

The New Zealand Dollar is trading water against its US counterpart after advancing to the highest level in three years above the 0.88 figure. Near-term resistance is in the 0.8842-62 area, marked by a major high dating back to August 2011 and the 38.2% Fibonacci expansion. A daily close above that exposes a rising channel top at 0.8896, followed by the 50% Fib at 0.8909. Alternatively, a reversal below the 0.8779-93, marked by the May 6 and June 27 high, targets the 23.6% Fib retracement at 0.8733.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

NZD/USD Technical Analysis: Still Stuck in Digestion Mode

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    Yen Down on Risk Appetite Swell But Year-End Flows May Fuel Turn

  2. Forex News

    NZD/USD Technical Analysis: Waiting for Direction Cues

  3. Forex News

    US Dollar Once Again Looks like a Buy versus Euro, Major Currencies

  4. Forex News

    New Zealand Dollar Reversal is Short-Lived

  5. Forex News

    Swiss Franc Sinks as SNB Surprises with Negative Interest Rates

Trading Center