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NZD/USD Technical Analysis: 2-Month Resistance Under Fire

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Talking Points:

The New Zealand Dollar has mounted another challenge of powerful resistance capping gains below the 0.74 figure against the greenback since late June. Beyond succeeding where multiple attempts failed before, a breakout would also negate a would-be bearish reversal signaled with a trend line breach two weeks ago.

A daily close above the July 12 high at 0.7325 initially opens the door for a test of the 38.2% Fibonacci expansion at 0.7368. Alternatively, a reversal below the 14.6% threshold at 0.7267 paves the way for another challenge of the 38.2% Fib retracement at 0.7217.

An actionable trade setup is absent at this time. On one hand, prices are too close to resistance to justify entering long from a risk/reward perspective. On the other, the absence of a clearly defined bearish reversal signal suggests taking up the short side is premature. Opting for the sidelines seems prudent for now.

What do past NZD/USD price patterns hint about current trends? Find out here!

NZD/USD Technical Analysis: 2-Month Resistance Under Fire

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