NZD/USD Forecast – New Zealand Dollar Could Decline Further Vs US Dollar

NZD/USD Forecast – New Zealand Dollar Could Decline Further Vs US Dollar

  • – The New Zealand Dollar faced a strong resistance near 0.6725 and declined against the US Dollar.
  • – There was a break below a key bullish trend line with support at 0.6685 on the hourly chart of the NZD/USD pair.
  • – Recently in New Zealand, the Business Confidence for August 2018 was released by the ANZ.
  • – The outcome was below the forecast of -48.0 as there was a decline in the index from -44.9 to -50.3.

New Zealand’s ANZ Business Confidence

Recently in New Zealand, the Business Confidence for August 2018 was released by the ANZ. The market was positioned for a decline from the last reading of -44.9 to -48.0 in August 2018.

 

The actual result was below the forecast of -48.0 as there was a decline in the index from -44.9 to -50.3. However, the ANZ business outlook for August 2018 came in at 3.8%, similar to the last reading. The report added that:

 

Manufacturing is now the least confident sector likely a lagged impact from construction sector woes. The services sector is the most optimistic.

 

The NZD/USD pair was under a lot of pressure below the 0.6700 support and it seems like it could decline further in the near term.

 

NZD/USD Technical Analysis

The New Zealand Dollar traded above the 0.6700 level recently against the US Dollar. The NZD/USD pair even traded above the 0.6720 level, but it faced a strong resistance near the 0.6725 level, which resulting in a bearish reaction.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair started a downside move and broke the 50% Fib retracement level of the last wave from the 0.6619 low to 0.6728 high. Moreover, there was a close below the 0.6700 support and the 100 hourly simple moving average.

 

During the decline, there was a break below a key bullish trend line with support at 0.6685 on the hourly chart of the NZD/USD pair. The pair is currently trading near the 61.8% Fib retracement level of the last wave from the 0.6619 low to 0.6728 high.

 

If the pair fails to stay above the 0.6660 level, it could decline further towards the 0.6650 support, below which there is a risk of more losses towards the 0.6620 level in the near term. On the upside, resistances are seen near 0.6675 and the 100 hourly SMA.


Also published on Medium.

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