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Talking Points:
- NZD/USD Technical Strategy: Flat
- Post-FOMC Kiwi Dollar surge struggles to breach trend-defining resistance
- Overall bias favors downside but actionable signal needed to re-enter short
The New Zealand Dollar is struggling to sustain upward momentum having recovered to the highest level in two months against its US counterpart. A choppy range has been carved out below trend-defining resistance, hinting that recent gains might be corrective within a still-valid downward trend.
From here, a daily close above trend line resistance in the 0.7024-43 area opens the door for a challenge of the 38.2% Fibonacci retracement at 0.7078. Alternatively, a move back below the 23.6% level at 0.6964 paves the way for a retest of former range top resistance at 0.6911, now recast as support.
The short NZD/USD position triggered at 0.6895 was stopped out as prices soared amid a broad-based US Dollar selloff inspired by last week's FOMC policy announcement . Re-entering the trade seems premature absent an actionable reversal signal, making the sidelines appear most attractive for the time being.
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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.
