NZDUSD | July Bottom Back in Focus | 05.08.2015
- 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.
We will keep you updated