NZD/USD Forecast – New Zealand Dollar In Uptrend above 0.7250 Vs US Dollar

NZD/USD Forecast – New Zealand Dollar In Uptrend above 0.7250 Vs US Dollar

  • – The New Zealand Dollar is currently in an uptrend above the 0.7250 support against the US Dollar.
  • – There is a major bullish trend line forming with support at 0.7255 on the hourly chart of the NZDUSD pair.
  • – Today in New Zealand, the Food Price Index (FPI) for Dec 2017 was released by the Statistics New Zealand.
  • – The outcome was below the market forecast of -0.5% as there was a decline in the index by 0.8% (MoM).

 

New Zealand Food Price Index

Today in New Zealand, the Food Price Index (FPI) for Dec 2017 was released by the Statistics New Zealand. The market was looking for the index to decline by around 0.5% in Dec 2017 compared with the previous month.

 

The actual result was below the market forecast of -0.5% as there was a decline in the index by 0.8%. Looking at the Fruit and vegetable prices, there was a decline of 1.7%, Meat, poultry, and fish prices declined by 0.4%.

 

Overall, the NZD/USD pair is currently under a short-term correction, but it remains supported above 0.7250.

 

NZD/USD Technical Analysis

The New Zealand Dollar made a major bottom near the 0.7140 support area against the US Dollar. The NZD/USD pair started an upside move and moved above the 0.7200 and 0.7250 resistance levels. It also broke the 0.7260 resistance and settled above the 100 hourly simple moving average.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair traded as high as 0.7282 before it started a downside correction. It corrected lower and is currently trading near the 50% Fib retracement level of the last wave from the 0.7235 low to 0.7282 high.

 

On the downside, there is a major bullish trend line forming with support at 0.7255 on the hourly chart of the NZDUSD pair. The trend line support is around the 61.8% Fib retracement level of the last wave from the 0.7235 low to 0.7282 high.

 

Overall, it seems like the NZD/USD pair remains in a decent uptrend above the 0.7250 level. On the upside, the pair has to break the 0.7280 resistance to surpass the 0.7300 level in the near term.


Also published on Medium.

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