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Talking Points:

• NZD/USD Technical Strategy: Flat

• Support: 0.7068, 0.7005, 0.6942

• Resistance:0.7145, 0.7193, 0.7281

The New Zealand Dollar continues to push lower against its US namesake, falling to the lowest level in five years. A daily close below the 38.2% Fibonacci expansionat 0.7068 exposes the 50% level at 0.7005. Alternatively, a reversal above the 23.6% Fib at 0.7145 clears the way for a challenge of the 14.6% expansion at 0.7193.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.

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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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