Tanalys

NZD/USD Technical Analysis: Support Held Below 0.83 Level

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Talking Points:

The New Zealand Dollar is pausing to consolidate after another push lower against its US namesake brought the currency to a six-month low. Near-term resistance is at 0.8283, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.8206. Alternatively, a turn above the 14.6% Fib at 0.8330 opens the door for a test of support-turned-resistance at 0.8401, the June 4 low.

Prices are wedged too closely between immediate support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for a more attractive opportunity to present itself.

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Daily Chart – Created Using FXCM Marketscope 2.0

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

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