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NZD/USD Technical Analysis: Down Trend

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by , 07-20-2018 at 07:29 AM (867 Views)
      
   
The New Zealand remains locked in a well-defined down trend against its US counterpart despite over two weeks of sideways consolidation. Price action has been marked by a clear-cut series of lower highs and lowssince a reversal from triple top resistance in mid-April.

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From here, a daily close below support in the 0.6688-0.6726 area opens the door for a challenge of the 38.2% Fibonacci expansion at 0.6589. Alternatively, a reversal above 0.6851 - support-turned-resistance reinforced by a falling trend line - paves the way for a test of the 38.2% Fib retracement at 0.6959.

Prices are too close to immediate support to justify establishing a short position from a risk/reward perspective. Alternatively, taking up the long side even tactically seems ill-advised absent a viable bullish reversal signal. With that in mind, opting for the sidelines is probably most prudent for now.

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