The New Zealand Dollar may be on the verse of a major breakout against its US counterpart. Prices are testing above resistance at 0.8380, the intersection of a falling trend line set from mid-October and the 38.2% Fibonacci expansion. A daily close above this barrier initially exposes the 50% level at 0.8481. Near-term support is at 0.8254, the 23.6% Fib.
Confirmation of a breakout is pending for now and we will wait for that to materialize before looking for a long trade setup. Needless to say, pursing a short position that assumes resistance will necessarily hold is premature at this point. We will monitor price action from the sidelines for now.