NZD/USD Technical Analysis: Trend Points Lower Despite Rebound
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NZD/USD Technical Analysis: Trend Points Lower Despite Rebound

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NZD/USD Technical Strategy: Flat

  • New Zealand Dollar attempting rebound after finding support near 0.72
  • Overall technical positioning continues to point to a bearish trend bias
  • Actionable trade setup absent for now until a clear-cut trigger emerges

The New Zealand Dollar is attempting a cautious recovery against its US namesake but overall positioning continues to hint the path of least resistance favors the downside. The currency found interim support near the 0.72 figure but a series of lower highs and lows defining the near-term trend remains intact.

An immediate upside barrier comes in at 0.7332, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a challenge of the 0.7428-34 area (38.2% level, September 20 high). Alternatively, a move below the 38.2% Fib retracement exposes the 50% threshold at 0.7109.

The short NZD/USD trade activated at 0.7227 was stopped out. From here, pursing the long side seems to run counter to the tone of the chart setup as a whole but re-entering short is premature absent an actionable trigger. Incoming US CPI data also marks potent event risk. Opting for the sidelines appears best for now.

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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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