NZD/USD Forecast – New Zealand Dollar Remains Sell on Rallies Vs US Dollar

NZD/USD Forecast – New Zealand Dollar Remains Sell on Rallies Vs US Dollar

  • – The New Zealand Dollar declined recently and traded below 0.6800 against the US Dollar.
  • – There are two bearish trend lines forming with resistance at 0.6845 on the hourly chart of the NZDUSD pair.
  • – Today in New Zealand, the Food Price Index (FPI) for Oct 2017 was released by the Statistics New Zealand.
  • – The outcome was below the market forecast of -1% as there was a decline in the index by 1.1%.

 

New Zealand Food Price Index

Today in New Zealand, the Food Price Index (FPI) for Oct 2017 was released by the Statistics New Zealand. The market was looking for a decline of 1% in Oct 2017 compared with the previous month.

 

The actual result was below the market forecast of -1% as there was a decline in the index by 1.1%. This was also well above the last decline of 0.2%. The report added that:

 

Butter prices led the way again – up 62 percent from the same time last year. Milk and cheese prices also increased (up 7.5 and 12 percent respectively) and had large contributions to the increase in food prices seen in the year to October 2017.

 

Overall, the NZD/USD pair is likely to correct higher in the near term, but it might face sellers near 0.6840-50.

 

NZD/USD Technical Analysis

The New Zealand Dollar started a downside move from the 0.6980 resistance against the US Dollar. The NZD/USD pair declined heavily, traded below the 0.6900 and 0.6800 levels, and also settled below the 100 hourly simple moving average.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair traded as low as 0.6780 and it is currently correcting higher. It is trading near the 23.6% Fib retracement level of the last decline from the 0.6882 high to 0.6780 low. On the upside, there are two bearish trend lines forming with resistance at 0.6845 on the hourly chart.

 

Moreover, the 50% Fib retracement level of the last decline from the 0.6882 high to 0.6780 low near 0.6830 is also a major resistance for buyers in the short term.

 

Overall, if the pair continues to move higher, then it will most likely face sellers near the 0.7830 and 0.7845 resistance levels.


Also published on Medium.

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