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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.6568, 0.6458, 0.6349
- Resistance:0.6783, 0.6885, 0.7049
The New Zealand Dollar is inching higher after rebounding from support at the bottom of a channel guiding the down trend against its US counterpart since April. A daily close above the 14.6% Fibonacci retracement at 0.6783 exposes 0.6885 (23.6% level, channel top). Alternatively, a turn below 0.6568 (channel floor, 38.2% Fib expansion) clears the way for a challenge of the 50% threshold at 0.6458.
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.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com