NZD/USD Forecast – New Zealand Dollar Crucial Uptrend Vs US Dollar
- – The New Zealand Dollar maintained a nice bullish bias above 0.7130 against the US Dollar.
- – There is a major connecting bullish trend line formed with support at 0.7135 on the hourly chart of NZD/USD.
- – In New Zealand today, the ANZ Commodity Price for May 2017 released by the ANZ National Bank posted an increase of 3.2%.
ANZ Commodity Price
Today in New Zealand, the ANZ Commodity Price for May 2017 was released by the ANZ National Bank. The market was positioned for a minor increase of 1% in May 2017, compared with the last decline of 0.2%.
However, the actual result was better, as there was an increase of 3.2% in May 2017, compared with the previous month. In terms of the yearly change, the price is up by 26%. The report added that “There was broad-based strength across most components, but the horticulture sector led the charge, rising 12.1% m/m as more new-season fruit hit markets“.
Overall, the NZD/USD pair is likely to remain in the bullish zone as long as the 0.7100 support area is intact.
NZD/USD Technical Analysis
The New Zealand Dollar after forming a good support at 0.7050-60 started an uptrend against the US Dollar. The NZD/USD pair traded above the 100 hourly simple moving average and the last swing high at 0.7121.
The upside move is solid, as the pair is already above the 1.236 extension of the last decline from the 0.7121 high to 0.7057 low. At the moment, the pair is trading neat 0.7150-60 and looks set for more gains in the near term.
It could easily break the 1.618 extension of the last decline from the 0.7121 high to 0.7057 low, and trade towards the 0.7180 level. On the downside, there is a major connecting bullish trend line formed with support at 0.7135 on the hourly chart of NZD/USD. Moreover, the broken resistance at 0.7145 may also act as a support if the pair dips from the current levels. Below 0.7145, the next major support is at 0.7130. Overall, the trend is super bullish with chances of NZD/USD trading towards the 0.7180-0.7200 levels in the near term.
