The New Zealand Dollar continues to tread water above support at 0.8261, the 38.2%Fibonacci retracement. A break lower initially exposes the 50% level at 0.8221. Alternatively, a rebound that yields a close above the 23.6% Fib at 0.8311 targets 0.8382, the intersection of a horizontal pivot in play since mid-September 2013and a falling trend line set from late October.
Range-bound consolidation doesn't offer a clear-cut directional trade setup. Furthermore, the close proximity of near-term up- and downside levels argues against taking a trade on risk/reward grounds. We will remain flat until something more attractive materializes.