NZD/USD Forecast – New Zealand To Retest 0.7150 Vs US Dollar?

NZD/USD Forecast – New Zealand To Retest 0.7150 Vs US Dollar?

  • – The New Zealand Dollar made a short-term top near 0.7336 against the US Dollar.
  • – There was a break below a key trend line with support at 0.7270 on the hourly chart of the NZDUSD pair.
  • – Today in New Zealand, Electronic Card Retail Sales for August 2017 were reported by Statistics New Zealand.
  • – The outcome was better than the forecast, as there was a decline in sales by 0.2% (MoM).

 

New Zealand Electronic Card Retail Sales

Today in New Zealand, Electronic Card Retail Sales for August 2017 were reported by Statistics New Zealand. The market was aligned for a decrease of around 0.5% in the Card sales compared with the previous month.

 

The actual result was better than the forecast, as there was a decline in sales by 0.2%, which was better than the last revised -0.6%. In terms of the yearly change, there was a rise of 4.4% in August 2017, which was a lot better than the last +2%. The report added that:

 

Spending rose in four of the six retail industries. The largest movement was in the consumables industry, up $3.3 million (0.2 percent). The consumables industry includes grocery and liquor retailing.

 

Overall, the NZD/USD pair might correct a few pips higher, but most likely to face sellers near 0.7260 in the near term.

 

NZD/USD Technical Analysis

The New Zealand Dollar climbed nicely this past week and moved above the 0.7310 resistance against the US Dollar. The NZD/USD pair traded as high 0.7336 where sellers appeared, and later the pair started a downside correction.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair traded below the 38.2% Fib retracement level of the last wave from the 0.7171 low to 0.7336 high. There was also a break below a key trend line with support at 0.7270 on the hourly chart, taking the pair towards the 0.7220 level.

 

However, the downside move was protected by the 100 hourly simple moving average and the 61.8% Fib retracement level of the last wave from the 0.7171 low to 0.7336 high.

 

The pair is currently recovering, but the broken support at 0.7260 is likely to act as a resistance on the upside. Moreover, there is a bearish trend line at 0.7255 to act as a sell zone in the near term.

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