NZD/USD Technical Analysis: Support Met Below 0.86 Mark

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: 0.8567, 0.8504, 0.8401
  • Resistance:0.8618, 0.8658-69, 0.8733

The New Zealand Dollar moved aggressively lower against the US Dollar after the RBNZ monetary policy announcement, hitting a six-week low. Near-term support is at 0.8567, the 61.8% Fibonacci retracement, with a break below that on a daily closing basis exposing the 76.4% level at 0.8504. Alternatively, a reversal above the 50% Fib at 0.8618 clears the way for a test of the 0.8658-69 area, marked by the June 17 close and the 38.2% retracement.

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: Support Met Below 0.86 Mark

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    NZD/USD Technical Analysis: Flat-Lining Near 0.77 Mark

  2. Forex News

    NZD/USD Technical Analysis: Quiet Consolidation Continues

  3. Forex News

    Possible Long Term NZDUSD Double Top and a Long Term EURGBP Support Zone

  4. Forex News

    US Dollar May Rise if Home Sales Top Estimates, Boosting Fed Outlook

  5. Forex News

    Top Trading Opportunities of 2015

Trading Center