- – The New Zealand Dollar struggled to move above the 0.6935 resistance and declined against the US Dollar.
- – There is a major bullish trend line in place with support at 0.6885 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Retail Sales report for Q1 2018 was released by the Statistics New Zealand.
- – The outcome was below the market forecast of +1.0% as sales increased only 0.1% in Q1 2018.
New Zealand Retail Sales
Today in New Zealand, the Retail Sales report for Q1 2018 was released by the Statistics New Zealand. The market was looking for a rise of around 1% in sales in Q1 2018, compared with the previous quarter.
The actual result was below the market forecast of +1.0% as sales increased only 0.1% in Q1 2018. It was also well below the last revised reading of +1.4%. Looking at the Retail Sales ex Autos figure, there was a rise of 0.6%, less than the last +1.8%. The report added that:
Electrical and electronic goods had the largest dollar volume increase in this series, up 5.4 percent. Trends for the sales volume in this industry have been rising over the past 10 years; coincidently price changes in this industry have generally fallen over the same period.
The NZD/USD pair declined and is currently trading near a major support area around 0.6880-90, which holds the key for the next move.
NZD/USD Technical Analysis
The New Zealand Dollar managed to start an upside move from the 0.6855 low against the US Dollar. The NZD/USD pair gained traction, moved above the 0.6880 and 0.6900 resistance levels, and also settled above 100 hourly simple moving average.
However, the pair failed to move above the $0.7935-40 resistance area. Later, it corrected lower and moved below the 50% Fib retracement level of the last wave from the 0.6871 low to 0.6932 high.
On the downside, there are many supports around the 0.6880 level. There is also a major bullish trend line in place with support at 0.6885 on the hourly chart of the NZDUSD pair. Moreover, the 61.8% Fib retracement level of the last wave from the 0.6871 low to 0.6932 high is at 0.6894.
Lastly, the 100 hourly SMA is positioned near 0.6890 to act as a strong support. Therefore, as long as the pair is above the 0.6880 support and the 100 hourly SMA, it could bounce back above 0.6900. On the flip side, below 0.6880, the pair might retest 0.6850.
Also published on Medium.Tags: New Zealand Dollar, NZD/USD, NZD/USD Technical Analysis, US Dollar