NZD/USD Technical Analysis: Prices Drop to 5-Year Low

| 11 juni, 2015 | 0 kommentarer

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.7024, 0.6956, 0.6871
  • Resistance:0.7126, 0.7231, 0.7333

The New Zealand Dollar tumbled against its US namesake after the RBNZ issued an unexpected interest rate cut, threatening to overturn an earlier trend line breach. A daily close below the 0.7024-61 area (June 5 low, 23.6% Fibonacci expansion) exposes the 38.2% level at 0.6956. Alternatively, a reversal above the 14.6% Fib at 0.7126 clears the way for a challenge of the June 10 high at 0.7231.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.

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NZD/USD Technical Analysis: Prices Drop to 5-Year Low

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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Kategori: Analys från DailyFX

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