NZD/USD Technical Analysis: Monthly Down Trend at Risk

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Talking Points:

  • NZD/USD Technical Strategy: Flat

  • Support: 0.7173, 0.7076, 0.6984

  • Resistance:0.7233, 0.7331, 0.7409

The New Zealand Dollar advanced against its US namesake as expected, with a bullish Morning Star pattern hinting at further upside ahead. A daily close above the 23.6% Fibonacci retracement at 0.7233 exposes the 38.2% level at 0.7331. Alternatively, a turn back below the 14.6% Fib at 0.7173 clears the way for a challenge of the June 1 low at 0.7076.

The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.

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NZD/USD Technical Analysis: Monthly Down Trend at Risk
NZD/USD Technical Analysis: Monthly Down Trend at Risk

Daily Chart - Created Using FXCM Marketscope

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


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