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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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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com