Sunday, June 29, 2014

NZD/USD Technical Analysis ? Rebound Pauses at May Top




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Talking Points:



  • NZD/USD Technical Strategy: Flat


  • Support: 0.8743-45, 0.8641, 0.8600


  • Resistance:0.8779-93, 0.8834, 0.8875


The New Zealand Dollar is testing resistance at May’s swing high against the US Dollar on approach to the 0.88 figure. A daily close above the 0.8779-93 area, marked by the May 6 high and the 38.2% Fibonacci expansion, targets the 50% level at 0.8834. Alternatively, a move back below the 0.8743-45 zone bracketed by the 23.6% Fib and the April 10 top clears the way for a move to swing lows in the 0.8641-61 region.



Negative RSI divergence argues in favor of the downside scenario but a defined bearish reversal signal remains absent for the time being, hinting it is premature to enter short. On the other hand, the pair is too close to resistance to justify entering long from a risk/reward perspective. We will remain flat for now.



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NZD/USD Technical Analysis – Rebound Pauses at May Top



Daily Chart – Created Using FXCM Marketscope 2.0



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





NZD/USD Technical Analysis ? Rebound Pauses at May Top

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