NZD/USD Forecast – New Zealand Dollar In Downtrend Vs US Dollar
- – The New Zealand Dollar made a short term top near 0.6940-50 against the US Dollar.
- – There was a break below a key bullish trend line with support at 0.6880 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Building Permits report for Oct 2017 was released by the Statistics New Zealand.
- – The outcome was below the market forecast of -4% as there was a decline in the Building Permits by 9.6%.
New Zealand Building Permits
Today in New Zealand, the Building Permits report for Oct 2017 was released by the Statistics New Zealand. The market was looking for a decline of 4% in Oct 2017 compared with the previous month.
The actual result was below the market forecast of -4% as there was a decline in the Building Permits by 9.6%. This was also a lot worse than the last revised decrease of 2.5%. The report added that:
The seasonally adjusted number of new homes consented fell 9.6 percent (after a 2.5 percent fall in September). For houses only, the seasonally adjusted number fell 2.9 percent (after a 2.0 percent fall in September). Apartments drove the fall in new homes consented in October.
Overall, the NZD/USD pair might correct a few pips in the near term, but upsides are likely be capped by the 0.6865-0.6880 levels.
NZD/USD Technical Analysis
The New Zealand Dollar after a decent upside move toward 0.6950 found sellers against the US Dollar. The NZD/USD pair started a downside move, declined below the 0.6900 handle and settled below the 100 hourly simple moving average.
During the downside move, there was a break below a key bullish trend line with support at 0.6880 on the hourly chart. The pair traded as low as 0.6832 and is currently correcting higher. An initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.6929 high to 0.6832 low.
However, the broken support near 0.6865-0.6880 will most likely act as a major hurdle on the upside. Moreover, the 50% Fib retracement level of the last decline from the 0.6929 high to 0.6832 low is at 0.6880 to act as a resistance.
Overall, if the pair continues to correct higher, then it will most likely face resistances near 0.6865 and 0.6880.
Also published on Medium.
