NZD/USD Technical Analysis: Kiwi Slides to 7-Month Low
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Talking Points:
NZD/USD Technical Strategy: Flat
Support: 0.8064, 0.7997, 0.7914
Resistance:0.8131, 0.8213, 0.8264
The New Zealand Dollar renewed its downtrend, sliding to the lowest level in seven months against its US counterpart. Near-term support is at 0.8064, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.7997. Alternatively, a turn above the 38.2% Fib at 0.8131 opens the door for a test of 0.8213, the intersection of a falling trend line and the 23.6% expansion.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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