Forex: NZD/USD Technical Analysis – Consolidating Below 0.83 Mark

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8261 (38.2% Fib ret.), 0.8221 (50% Fib ret.)
  • Resistance: 0.8311 (23.6% Fib ret.), 0.8382 (trend line, horizontal pivot)

The New Zealand Dollar continues to tread water above support at 0.8261, the 38.2%Fibonacci retracement. A break lower initially exposes the 50% level at 0.8221. Alternatively, a rebound that yields a close above the 23.6% Fib at 0.8311 targets 0.8382, the intersection of a horizontal pivot in play since mid-September 2013and a falling trend line set from late October.

Range-bound consolidation doesn’t offer a clear-cut directional trade setup. Furthermore, the close proximity of near-term up- and downside levels argues against taking a trade on risk/reward grounds. We will remain flat until something more attractive materializes.

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dailyclassics_nzd-usd_body_Picture_11.png, Forex: NZD/USD Technical Analysis – Consolidating Below 0.83 Mark

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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