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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7767, 0.7682, 0.7602
- Resistance:0.7919, 0.8051, 0.8138
The New Zealand Dollar corrected higher after seemingly resuming the down trend against its US namesake last week. Near-term support is at 0.7767, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.7682-7707 area marked by the July 2013 and September 2014 lows. Alternatively, a rebound above channel floor support-turned-resistance at 0.7919 clears the way for a challenge of the February 2014 low at 0.8051.
Prices are wedged too closely between near-term support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines, waiting for a more compelling opportunity to emerge.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com