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- NZD/USD Technical Strategy: Flat
- Support: 0.8144, 0.8082, 0.8006
- Resistance:0.8206, 0.8283, 0.8330
The New Zealand Dollar is working on the fifth consecutive decline against its US counterpart, with prices down to the weakest level in seven months. Near-term support is at 0.8144, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.8082. Alternatively, a reversal above the 38.2% Fib at 0.8206 opens the door for a test of the 23.6% expansion at 0.0.8283.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com