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Talking Points:

  • NZD/USD Technical Strategy:Flat
  • Support: 0.7514, 0.7479, 0.7421
  • Resistance:0.7573, 0.7619, 0.7666

The New Zealand Dollar looks to be resuming the advance against its US counterpart, clearing a formerly broken channel floor recast as resistance. A daily close above the 38.2% Fibonacci expansion at 0.7573 exposes the 50% level at 0.7619. Alternatively, a move below the 23.6% Fib at 0.7514 clears the way for a test of the 14.6% expansion at 0.7479.

We see the dominant NZDUSD trend as favoring the downside. With that in mind, will treat on-coming gains as corrective and look to get short once the upswing runs its course and appears to show signs of reversing.

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NZD/USD Technical Analysis: Poised for Larger Recovery

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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