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Talking Points:

• NZD/USD Technical Strategy:Flat

• Support: 0.7448, 0.7344, 0.7280

• Resistance:0.7532, 0.7616, 0.7721

The New Zealand Dollar paused to digest gains after rising to the highest level in a month against its US counterpart. A daily close above the intersection of channel support-turned-resistance and the 50% Fibonacci retracement 0.7532 exposes the 61.8% level at 0.7616. Alternatively, a move below the 38.2% Fib at 0.7448 clears the way for a test of the 23.6% retracement at 0.7344.

We see the dominant NZDUSD trend as favoring the downside. With that in mind, will treat on-coming gains as corrective and look to get short once the upswing runs its course and appears to show signs of reversing.

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Daily Chart - Created Using FXCM Marketscope

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

original source

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