NZD/USD Technical Analysis: March Top Held as Resistance

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Talking Points:

• NZD/USD Technical Strategy: Flat

• Support: 0.7582, 0.7519, 0.7450

• Resistance:0.7658, 0.7721, 0.7799

The New Zealand Dollar recoiled from resistance marked by the March swing high against its US counterpart. Near-term support is in the 0.7582-95 area (horizontal pivot, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing 0.7519 (38.2% Fib retracement, rising trend line). Alternatively, a turn above the 0.7647-58 area (December 8 2014 close, 50% expansion) opens the door for a test of the 50% level at 0.7721.

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 that taking up the long side is premature. With that in mind, we will remain flat for now.

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NZD/USD Technical Analysis: March Top Held as Resistance

Daily Chart - Created Using FXCM Marketscope

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

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