NZD/USD Technical Technique: FLAT
New Zealand Greenback trying to renew advance after help retest
Month-to-month chart positioning warns towards bets on upside follow-through
Choosing the sidelines till better-defined commerce setup presents itself
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The New Zealand Greenback is trying to revive upward momentum after retesting resistance-turned-support within the Zero.6688-Zero.6726 space. Quick resistance is at Zero.6851, with a break above that confirmed on a day by day closing foundation opening the door for a take a look at of the June 6 excessive at Zero.7060.
Alternatively, a flip again beneath Zero.6688 paves the way in which for one more problem of former vary high resistance within the Zero.6592-Zero.6619 zone. This adopted by a stronger threshold on the Zero.65 determine, marked by a chart inflection level in play since mid-September and former falling development line resistance (now recast as help).
Whereas day by day chart positioning appears to make a compelling case for the upside state of affairs, turning to the longer-term setup undermines conviction. Costs look like retesting a damaged two-year vary flooring as sellers take a look at the bounds of a rising development established in October 2000.
Whereas the structural uptrend stays intact for now, it’s clearly underneath strain. If nothing else, costs are pushing up towards main resistance, with a confirmed breakout wanted to make a compelling case for upside follow-through.
This appears to argue towards taking over the lengthy facet on danger/reward grounds. Getting into quick with no outlined bearish reversal sign doesn’t look like any extra engaging nonetheless. On steadiness, choosing the sidelines appears most prudent for now.
NZD/USD TRADING RESOURCES:
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
To contact Ilya, use the Comments part beneath or @IlyaSpivak on Twitter