NZD/USD Forecast – Can New Zealand Dollar Gains Momentum Vs US Dollar?

NZD/USD Forecast – Can New Zealand Dollar Gains Momentum Vs US Dollar?

  • – The New Zealand Dollar remains in a downtrend below 0.7280 against the US Dollar.
  • – There is a crucial bearish trend line with resistance at 0.7265 forming on the hourly chart of NZD/USD.
  • – Today in New Zealand, the RBNZ Interest Rate Decision (June 22, 2017) was announced in which the central bank kept rates at 1.75%.

 

RBNZ Interest Rate Decision

Today in New Zealand, the RBNZ Interest Rate Decision (June 22, 2017) was announced by the Reserve Bank of New Zealand. The market was positioned for no changes in rates from 1.75%.

 

The actual result was in line with the forecast, as the central bank kept rates at 1.75%. Furthermore, the Visitor Arrivals for May 2017 was released by the Statistics New Zealand. The market was expecting an increase of around 10%. However, the actual result was lower, as there was a rise of 8%. The report added that “Annual net migration reached 72,000 in the May 2017 year. Migrant arrivals numbered 130,400 and migrant departures numbered 58,400 in the year ended May 2017”.

 

Overall, the NZD/USD may find it difficult to gain pace and move above the 0.7265-70 resistance in the near term.

 

NZD/USD Technical Analysis

The New Zealand Dollar is in a minor downtrend and moved below the 0.7280 support against the US Dollar. The NZD/USD pair recently declined towards the 0.7200 handle where it found support and started correcting higher.

 

NZD/USD Technical Analysis New Zealand US Dollar

 

The pair recovered and moved above the 100 hourly simple moving average and the 38.2% Fib retracement level of the last decline from the 0.7297 high to 0.7205 low. On the upside, there is a crucial bearish trend line with resistance at 0.7265 forming on the hourly chart.

 

The same trend line resistance is near the 61.8% Fib retracement level of the last decline from the 0.7297 high to 0.7205 low. If there is a move towards the trend line resistance or 0.7265, there are chances of sellers protecting gains.

 

On the downside, the 100 hourly simple moving average and the 0.7240 level is a short-term support zone. A break below it could push the pair back towards the last swing low of 0.7210-00 in the near term.

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