NZD/USD Forecast – New Zealand Gaining Momentum Vs US Dollar

NZD/USD Forecast – New Zealand Gaining Momentum Vs US Dollar

  • – The New Zealand Dollar after a sharp decline towards 0.7200 against the US Dollar found support.
  • – The NZDUSD pair gained pace and managed to break a major bearish trend line with resistance at 0.7265 on the hourly chart.
  • – Today in New Zealand, the Food Price Index (FPI) for June 2017 was released by the Statistics New Zealand.
  • – The outcome was below the forecast of 1%, as there was a rise of 0.2% in the index.

 

New Zealand Food Price Index

Today in in New Zealand, the Food Price Index (FPI) for June 2017 was released by the Statistics New Zealand. The market was aligned for an increase of around 1% compared with the previous month.

 

The actual result was on the lower side, as the index rose 0.2% in June 2017. The main contributors to the rise were avocados and soft drinks. As per the report, the average price for a 200g avocado was up from $3.38 in May 2017 to $4.52 in June 2017. Commenting on the data release, the consumer prices manager, Matthew Haigh, stated:

Avocado prices tend to peak in the winter before falling in spring as new fruit become available. Prices are back near the record level in June last year.

 

Overall, the NZD/USD may correct further a few pips, but it is well supported above the 0.7270 area in the short term.

 

NZD/USD Technical Analysis

The New Zealand Dollar was in deep trouble earlier this week, as it traded below the 0.7240-30 support area against the US Dollar. The NZD/USD pair traded as low as 0.7201 where buyers appeared and pushed the pair higher.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair recovered very well during the past 3-4 sessions, and traded above the 0.7230 resistance area. There was also a break above the 100 hourly simple moving average and the 50% Fib retracement level of the last decline from the 0.7307 high to 0.7201 low.

 

Recently, the pair also broke a major bearish trend line with resistance at 0.7265 on the hourly chart, and traded as high as 0.7297 where sellers appeared. A correction started, but the pair found support near a bullish trend line at 0.7245.

 

The pair is back moving higher, and it may soon break the 0.7290-0.7300 resistance zone for further gains. The next stop could be 0.7315.

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