NZD/USD – New Zealand Dollar Struggle May Continue
- – The New Zealand dollar faced a lot of sellers lately and moved down towards 0.7000 against the US dollar.
- – There are several important bearish trend lines formed on the 4-hours chart, which may act as a resistance for NZD/USD at 0.7060-70.
- – Recently, the US Initial Jobless Claims released by the US Department of Labor posted a decline from 254K to 235K.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims was released by the US Department of Labor. The market was aligned for the number of people filing first-time claims for state unemployment insurance to increase from 254K to 257K.
However, the result was above the forecast, as the Initial Jobless Claims report posted a decline of more than 15K, and came in at 235K. The Continuing Jobless Claims also declined from the last revised reading of 2.043M to 1.977M.
The report added that the “This is the lowest level for initial claims since November 24, 1973 when it was 233,000. The 4-week moving average was 253,500, a decrease of 6,500 from the previous week’s revised average. The previous week’s average was revised up by 250 from 259,750 to 260,000”.
Overall, the result was above the forecast, which boosted the US Dollar and pushed the Kiwi dollar down. There were a few other releases like the CPI, which also exceeded the market forecast, and helped the US Dollar.
NZD/USD Technical Analysis
The New Zealand dollar was under a bearish pressure throughout this week against the US Dollar, and it traded below the 0.7100 support area. A new weekly low was formed at 0.6990, and it looks like the NZD/USD pair is struggling to hold the ground.
There are a few bearish trend lines formed on the 4-hours chart of NZD/USD, coinciding at 0.7060-70. So, it looks like there is a major resistance formed at 0.7060, as the 23.6% Fib retracement level of the last decline from the 0.7306 high to 0.6990 low is also around the same level.
On the downside, a daily close below the 0.7000 handle may ignite further losses in NZD/USD. One may even consider selling near the highlighted resistance area with a stop above it.
