NZD/USD Forecast — Can New Zealand Dollar Recover Above 0.6600 Vs US Dollar?

  • - The New Zealand Dollar declined heavily and broke the 0.6620 support area against the US Dollar.
  • - There is a major declining channel formed with resistance near 0.6590 on the hourly chart of the NZDUSD pair.
  • - Today in New Zealand, the Food Price Index (FPI) for July 2018 was released by the Statistics New Zealand.
  • - The outcome was above the market forecast of +0.6% as there was a rise in the index by 0.7%.

New Zealand Food Price Index (FPI)

Today in New Zealand, the Food Price Index (FPI) for July 2018 was released by the Statistics New Zealand. The market was looking for a rise of around 0.6% in the FPI in July 2018, more than the last +0.5%.

The actual result was above the market forecast of +0.6% as there was a rise in the index by 0.7%. The report added that:

Vegetable prices rose 9.2 percent in the month, with higher prices for fresh lettuce (up 77 percent), tomatoes (up 30 percent), and broccoli (up 24 percent) making the largest contributions. After adjusting for seasonal effects, vegetable prices rose 3.8 percent.

The NZD/USD pair is currently attempting a recovery, but it won’t be easy for buyers to clear the 0.6590 and 0.6600 resistance levels.

NZD/USD Technical Analysis

The New Zealand Dollar was under a lot of pressure this past week as it fell sharply from the 0.6740 swing high against the US Dollar. The NZD/USD pair declined, broke many support levels like 0.6680, 0.6620 and 0.6600, and also settled below the 100 hourly simple moving average.

NZD/USD Technical Analysis New Zealand Dollar US Dollar

The pair traded as low as 0.6561 and it is currently correcting higher. It broke the 38.2% Fib retracement level of the last decline from the 0.6616 high to 0.6561 low. However, the upside move was capped by the 0.6590–0.6600 resistance zone.

Moreover, the 50% Fib retracement level of the last decline from the 0.6616 high to 0.6561 low acted as a resistance. More importantly, there is a major declining channel formed with resistance near 0.6590 on the hourly chart of the NZDUSD pair.

Therefore, the pair must break the 0.6590 and 0.6600 resistance levels to stage a decent recovery in the near term. On the downside, a break below the 0.6560 support could push NZD/USD towards 0.6525.


Originally published at ForexGator.com.