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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.8617 (14.6% Fib exp.), 0.8513 (Oct 22 close)
- Resistance: 0.8679 (23.6% Fib exp.), 0.8745-81 (38.2% Fib exp., Apr 10 high)
The New Zealand turned is edging higher anew having once again found support above the 0.8513, the October 22 close. Breaking above resistance at 0.8679, the 23.6% Fibonacci expansion, targets the 0.8745-81 area marked by the April 10 high and the 38.2% level. A turn below the 14.6% Fib at 0.8617 exposes 0.8513 anew.
Risk/reward considerations argue against taking a long position with prices in so close to relevant resistance. We will continue to stand on the sidelines for the time being, waiting for a more attractive trade opportunity to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com