NZD/USD—The Kiwi is Looking to Move Lower Once Again

NZD/USD (0.7480)

• Resistance Levels: 0.7530, 0.7607, 0.7695
• Support Levels: 0.7405, 0.7331, 0.7245
• Trade Strategy: Stand Aside

The New Zealand Dollar appears to be turning lower against its US Dollar counterpart. This is now negating the upside bounce higher. Please refer to the below daily MT 4 chart.

Note the congestion area running from 0.7417 to 0.7405. A daily close below this area will challenge the next technical support at 0.7331. A break above the key pivot at 0.7530 will challenge the next technical resistance at 0.7607. This is the low achieved on December 9.

Price action is too close to a support level to warrant a short NZD trade at this time. There are also no clear bullish reversal signals to justify a short Dollar trade as well. My strategy is to monitor the charts for a more actionable trade setup to come along.