NZD/USD Forecast – New Zealand Dollar Eyes New Highs Vs US Dollar?

NZD/USD Forecast – New Zealand Dollar Eyes New Highs Vs US Dollar?

  • – The New Zealand Dollar is super bullish and looking to break the 0.7225 resistance against the US Dollar.
  • – There are two important bullish trend lines with supports as 0.7205 and 0.7195 formed on the hourly chart of NZD/USD.
  • – Recently in New Zealand, the Current Account figure for Q1 2017 released by the Statistics New Zealand posted a surplus of $0.244B.

 

New Zealand Current Account

Recently in New Zealand, the Current Account figure for Q1 2017 was released by the Statistics New Zealand. The market was positioned for a trade surplus of $0.922B in Q1 2017, compared with the last deficit of $-2.335B.

 

However, the actual result was on the lower side, as the trade surplus was $0.244B in Q1 2017, but it was a lot better than the last $-2.415B (revised from $-2.335B). The report added that “For the year ended March 2017, New Zealand’s annual current account deficit was $8.1 billion (3.1 percent of GDP). As a percentage of GDP, this is the same as the deficit for the year ended March 2016 ($7.8 billion)”.

 

It looks like the NZD/USD pair may gain traction, and if it breaks 0.7225-30, there can be an upside spike.

 

NZD/USD Technical Analysis

The New Zealand Dollar moved higher recently and broke the 0.7150 resistance against the US Dollar to close above the 0.7200 handle. The NZD/USD pair is currently trading in a tight range below the 0.7225 higher, and looking for more gains.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 0.7170 low to 0.7226 high. Moreover, the 100 simple moving average is also positioned on the downside along with an important bullish trend line with support at 0.7205 on the hourly chart.

 

There is one more bullish trend line on the downside at 0.7195, which is around the 50% Fib retracement level of the last wave from the 0.7170 low to 0.7226 high. Once the NZD buyers gain control and clears 0.7230, there can be solid gains towards 0.7250 or even 0.7260 in the near term. Buying dips near 0.7200 remains a good deal for now.

Tags: , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry