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Talking Points:
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NZD/USD Technical Strategy: Flat
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Support: 0.7767 0.7682 0.7602
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Resistance:0.7957 0.8051 0.8138
The New Zealand Dollar turned lower anew following a corrective bounce against its US namesake with prices building on a bearish Flag pattern breakout. Near-term support is at 0.7767 the 23.6% Fibonacci expansion with a break below that on a daily closing basis exposing the 0.7682-7707 area marked by the July 2013 and September 2014 lows. Alternatively a rebound above Flag bottom support-turned-resistance at 0.7957 clears the way for a challenge of the February 2014 low at 0.8051.
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 a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak Currency Strategist for DailyFX.com
original source
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