NZD/USD Forecast – New Zealand Dollar Faces Tough Test Vs US Dollar

NZD/USD Forecast – New Zealand Dollar Faces Tough Test Vs US Dollar

  • – The New Zealand Dollar after trading towards 0.7260 against the US Dollar found support.
  • – Earlier, there was a break below a major bullish trend line with support at 0.7310 on the hourly chart of NZD/USD.
  • – Today in New Zealand, the NZIER Business Confidence for Q2 2017 released by the New Zealand Institute of Economic Research posted 18%, up from the last 17%.

 

NZIER Business Confidence

Today in New Zealand, the NZIER Business Confidence for Q2 2017 was released by the New Zealand Institute of Economic Research. The market was aligned for better economic conditions for a net 17% of businesses.

 

The actual result was a bit better, as net 18 percent of businesses expect better economic conditions in Q2 2017. The report stated that “Activity and positive sentiment continue to broaden beyond Auckland, with Waikato, Bay of Plenty, Wellington, Gisborne and Southland experiencing the highest levels of business confidence.”

 

Overall, the NZD/USD may correct further, but it may face a lot of offers near the 0.7300-7310 resistance in the near term.

 

NZD/USD Technical Analysis

The New Zealand Dollar failed once again to break the 0.7340-0.7350 resistance against the US Dollar. The NZD/USD pair failed on more than two occasions to settle above 0.7350, and started a downside move to trade below 0.7320.

 

NZD/USD Technical Analysis New Zealand US Dollar

 

The pair declined and broke a major bullish trend line with support at 0.7310 on the hourly chart. Even the 100 hourly simple moving average at 0.7305 was cleared. It ignited a downside wave and the pair traded as low as 0.7262.

 

At the moment, the pair is recovering, and testing the 23.6% Fib retracement level of the last decline from the 0.7344 high to 0.7262 low. There is a chance of an upside extension towards 0.7300, which is a major hurdle for buyers.

 

The 0.7300 resistance is aligned with the 100 hourly simple moving average and the 50% Fib retracement level of the last decline from the 0.7344 high to 0.7262 low. So, if the pair continues to move higher, it may face offers near 0.7300. Selling rallies towards 0.7300 might be considered in the short term as long as there is now close above the 100 hourly simple moving average.

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