NZD/USD—Sellers Challenge the Pivot at 0.72 and Fail

NZD/USD (0.7305)

• Resistance Levels: 0.7340, 0.7445, 0.7607
• Support Levels: 0.7255, 0.72, 0.7170
• Trade Strategy: Stand Aside

The Kiwi Dollar tested the support near the key pivot at 0.72 then bounced back higher. This was the lowest price level for the NZD/USD in four years. Please see the below daily MT 4 chart.

There is near term resistance at 0.7340. A break above this level will challenge 0.7445. The alternative move is that the Kiwi would move back lower. If that happens, then we see technical support at 0.7255. That would be the first challenge. A daily close back below this level would challenge 0.72 once again.

Price action is not conclusive. I do not see any actionable signals for either a short NZD or long Dollar at this time. I will sit on the sidelines waiting for a better opportunity to emerge in the NZD/USD market.