NZD/USD Forecast – New Zealand Dollar Could Extend Declines Vs US Dollar
- – The New Zealand Dollar failed to settle above 0.6830 and declined against the US Dollar.
- – There is a major bearish trend line in place with resistance near 0.6825 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Unemployment Rate for Q2 2018 was released by the Statistics New Zealand.
- – The outcome was below the market forecast of +4.4% as there was a rise in the unemployment rate to 4.5%.
New Zealand Unemployment Rate
Today in New Zealand, the Unemployment Rate for Q2 2018 was released by the Statistics New Zealand. The market was looking for no change in the unemployment rate from the last reading of 4.4%.
The actual result was below the market forecast of +4.4% as there was a rise in the unemployment rate to 4.5%. Looking at the Employment Change, it came in at 0.5%, better than the forecast of 0.4%, but less than the last 0.6%. The report added that:
The unemployment rate for men rose to 4.3 percent (up 0.3 percentage points), while for women it fell to 4.7 percent (down 0.2 percentage points). The underutilisation rate for men rose to 10.0 percent (up 0.6 percentage points), while for women, it fell to 14.3 percent (down 0.3 percentage points).
The NZD/USD pair is currently under pressure and it seems like the pair may perhaps decline further towards the 0.6780 level in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar moved higher nicely above the 0.6800 level against the US Dollar. The NZD/USD pair even broke the 0.6820 resistance and settled above the 100 hourly simple moving average, but it failed near the 0.7830 level.
The pair declined and broke a connecting bullish trend line with support at 0.6815 on the hourly chart. It also broke the 38.2% Fib retracement level of the last wave from the 0.6762 low to 0.6834 high, and closed back below the 100 hourly SMA.
It seems like the pair is likely to decline further below the 0.6800 support. The next support is near the 61.8% Fib retracement level of the last wave from the 0.6762 low to 0.6834 high at 0.6789. Below this, the pair may well decline back towards the 0.6760 level.
If it moves higher, it is likely to face resistances near 0.6810, 100 hourly SMA, and a major bearish trend line in place with resistance near 0.6825 on the hourly chart.
Also published on Medium.
