NZD/USD Forecast – New Zealand Dollar In Downtrend Vs US Dollar
- – The New Zealand Dollar fell sharply below the 0.6880 and 0.6860 supports against the US Dollar.
- – There is a key bearish trend line forming with resistance near 0.6865 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Trade Balance report for May 2018 was released by the Statistics New Zealand.
- – The outcome was above the market forecast of $100M as there was a trade surplus of $294M (MoM).
New Zealand Trade Balance
Today in New Zealand, the Trade Balance report for May 2018 was released by the Statistics New Zealand. The market was looking for a trade surplus of $100M in May 2018 compared with the previous month.
The actual result was above the market forecast of $100M as there was a trade surplus of $294M. Looking at the yearly change, there was a trade deficit of $-3.60B, less than the forecast of $-3.70B. The report added that:
Goods exports rose $509 million (10 percent) to $5.4 billion, a new high for total exports in a May month, and the second-highest for any month. The highest was $5.5 billion in December 2017.
The NZD/USD pair was not able to recover after the release and is currently trading in a bearish zone below the 0.6860 support.
NZD/USD Technical Analysis
The New Zealand Dollar faced a lot of selling interest above the 0.6900 level against the US Dollar. The NZD/USD started a downside move and broke the 0.6880 and 0.6860 support levels to settle below the 100 hourly simple moving average.
The pair broke the 0.6820 support level and traded as low as 0.6813. At the moment, the pair is correcting higher and is trading towards the 23.6% Fib retracement level of the last decline from the 0.6899 high to 0.6813 low.
On the upside, there are many hurdles near the 0.6860 level. There is also a key bearish trend line forming with resistance near 0.6865 on the hourly chart of the NZDUSD pair. An intermediate resistance is near the 50% Fib retracement level of the last decline from the 0.6899 high to 0.6813 low at 0.6856.
Therefore, if the pair corrects higher, it could face sellers near 0.6850 and 0.6860. On the downside, the 0.6820 and 0.6800 support levels hold the key for the next move.
Also published on Medium.
