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Talking Points:
- NZD/USD Technical Strategy: Flat
- Kiwi Dollar posts largest daily advance in two months vs. US namesake
- Waiting for signs of exhaustion on upswing to re-enter short position
The New Zealand Dollar moved sharply higher against its US namesake, posting the largest daily gain in two months and reclaiming the 0.72 figure. The longer-term bias continues to look bearish however, with gains appearing corrective in the context of a downward reversal defined in late September.
Near-term resistance is at 0.7302, the 50% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a test of the 61.8% level at 0.7365. Alternatively, a turn back below the 38.2% Fib at 0.7239 sees the next downside barrier at 0.7161, the 23.6% expansion.
The second half of a NZD/USD position triggered at 0.7273 has been stopped out at breakeven after initial profits were booked on meeting the trade’s first objective. An actionable opportunity to re-establish exposure is absent for now absent clear-cut signs of bullish exhaustion. Standing aside seems prudent.
What do past NZD/USD price patterns hint about current trends? Find out here!
