NZDUSD | July Bottom Back in Focus | 05.08.2015

NZDUSD Technical AnalysisTalking Points:

  • NZDUSD Technical Analysis : Flat
  • Support: 0.6443, 0.6261, 0.6114
  • Resistance:0.6556, 0.6679, 0.6791

The New Zealand Dollar is sliding back toward July lows after failing to make good on an upward push against its US namesake. A daily close below the 0.6443-97 area (23.6% Fibonacci expansion, July 16 low) exposes the 38.2% level at 0.6261. Alternatively, a move above the 14.6% expansion at 0.6556 clears the way for a challenge of the 14.6% Fib retracement at 0.6679.

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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