NZD/USD Forecast – New Zealand under Pressure Vs US Dollar Post RBNZ

NZD/USD Forecast – New Zealand under Pressure Vs US Dollar Post RBNZ

  • – The New Zealand Dollar declined sharply and moved below 0.7350 against the US Dollar.
  • – There is a monster descending channel pattern with resistance at 0.7350 forming on the hourly chart of the NZDUSD pair.
  • – Today in New Zealand, the RBNZ Interest Rate Decision (10 August 2017) was announced by the Reserve Bank of New Zealand.
  • – The outcome was in line with the forecast of 1.75%, as Official Cash Rate (OCR) unchanged at 1.75 percent.

 

RBNZ Interest Rate Decision

Today in New Zealand, the RBNZ Interest Rate Decision (10 August 2017) was announced by the Reserve Bank of New Zealand. The market was aligned for no change in the interest rate in August 2017 from 1.75% by the central bank.

 

The actual result was in line with the forecast of 1.75%, as Official Cash Rate (OCR) unchanged at 1.75 percent. Moreover, the Electronic Card Retail Sales for July 2017 was reported by Statistics New Zealand today. The outcome was below the forecast of an increase of 0.3%, as there was a decline of 0.5% (MoM). In terms of the yearly change, there was a rise of 2%, less than the last 4.5%.

 

Overall, the NZD/USD may continue to decline and could even trade towards the 0.7290-0.7280 support zone.

 

NZD/USD Technical Analysis

The New Zealand Dollar has likely started a major downtrend below the 0.7500 resistance area against the US Dollar. The NZD/USD pair recently declined heavily and traded below the 0.7500 and 0.7400 support levels.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

There is a monster descending channel pattern with resistance at 0.7350 forming on the hourly chart of the NZDUSD pair. The channel resistance is also near the 100 hourly simple moving average at 0.7555, which is acting as a strong barrier for buyers.

 

Recently, the pair also broke a short-term consolidation channel at 0.7315, which has opened the doors for more declines. The pair might soon decline further and could even trade towards the 1.236 extension of the last wave from the 0.7307 low to 0.7367 high.

 

Overall, the trend is very bearish for NZD/USD and there are chances of more declines towards 0.7290-80 in the near term.

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