To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7798, 0.7708, 0.7597
- Resistance:0.7887, 0.7998, 0.8067
The New Zealand Dollar appears vulnerable to deeper losses against its US counterpart after sliding to the weakest level in over a year. A daily close below the 50% Fibonacci expansion at 0.7798 exposes the 61.8% mark at 0.7708. Alternatively, a turn back above the 38.2% Fib at 0.7887 clears the way for a challenge of the 23.6% expansion at 0.7998.
While entering short is a tempting proposition, positive RSI divergence warns of ebbing downside momentum and hints that a reversal higher may emerge around the corner. With that in mind, we will opt to remain flat and wait for a more compelling opportunity.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com