To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7073, 0.7008, 0.6903
- Resistance:0.7130, 0.7194, 0.7299
The New Zealand Dollar turned higher as expected against its US counterpart, forming a Bullish Engulfing candlestick pattern to hint at further gains ahead. Near-term falling trend line resistance is at 0.7130, with a break below that on a daily closing basis exposing the 23.6% Fibonacci retracement at 0.7194. Alternatively, a move below the 14.6% Fib expansion at 0.7073 opens the door for a test of the 23.6% threshold at 0.7008.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope
— Written by Ilya Spivak, Currency Strategist for DailyFX.com