NZD/USD Technical Analysis: Still Stuck in Choppy Range
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NZD/USD Technical Analysis: Still Stuck in Choppy Range

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • New Zealand Dollar price action still mired in choppy range near 0.67
  • Waiting for actionable trade setup, improved risk/reward parameters

New Zealand Dollar price action against its US namesake remains choppy as the currency oscillates in familiar territory near the 0.67 figure . Broadly speaking, a series of lower highs and lows since mid-October 2015 points to a bearish bias.

Near-term support is at 0.6673, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis opening the door for a test of the 50% level at 0.6611. Alternatively, a reversal above the 23.6% threshold at 0.6750 sees the next upside barrier at 0.6793, the 23.6% Fib expansion.

Entering short in line with our 2016 fundamental outlook is an unattractive proposition at current levels . First, the absence of a clear-cut bearish reversal signal warns committing to exposure is premature. Second, the available trading range is too narrow to justify a trade on risk/reward grounds. As such, we will remain flat and wait for a better opportunity to present itself.

FXCM traders are net-long NZD/USD. Find out what this means for the trend going forward!

NZD/USD Technical Analysis: Still Stuck in Choppy Range

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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