NZD/USD Technical Analysis: Range Continues to Narrow

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Talking Points:

  • NZD/USD Technical Strategy: Flat

  • Support: 0.7515, 0.7406, 0.7296

  • Resistance:0.7595, 0.7658, 0.7721

The New Zealand Dollar is wedged in an increasingly narrow range below a trend line capping gains against its US namesake since late October. A daily close above 0.7595 (38.2% Fibonacci expansion, trend line) exposes the 50% level at 0.7658. Alternatively, a turn below trend line support at 0.7515 clears the way for a challenge of a horizontal pivot at 0.7406.

Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.

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NZD/USD Technical Analysis: Range Continues to Narrow
NZD/USD Technical Analysis: Range Continues to Narrow

Daily Chart - Created Using FXCM Marketscope

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


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