NZD/USD Forecast — New Zealand Dollar Breaks Key Resistance Vs US Dollar
- - The New Zealand Dollar made a nice upside move from the 0.6820 swing low against the US Dollar.
- - There was a break above a key bearish trend line with resistance at 0.6860 on the hourly chart of the NZDUSD pair.
- - Today in New Zealand, the Electronic Card Retail Sales for Nov 2017 was reported by Statistics New Zealand.
- - The outcome was above the market forecast of +2.5% as there was an increase of 4.3% in sales (YoY).
New Zealand Electronic Card Retail Sales
Today in New Zealand, Electronic Card Retail Sales for Nov 2017 was reported by Statistics New Zealand. The market was looking for a rise of around 1% in sales in Nov 2017 compared with the previous month.
The actual result was above the market forecast of +1% as there was an increase of 1.2% in sales (MoM). This was also better than the last revised reading of +0.5%. In terms of the yearly change. There was an increase of 4.3%, which was better than the last +1.3%. The report added that:
Core retail spending (which excludes the vehicle-related industries) rose 0.8 percent in November 2017, after a 0.5 percent rise in October 2017.
Overall, the NZD/USD pair remains in the bullish zone above 0.6860 and is eyeing more gains in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar after declining towards the 0.6820 level against the US Dollar found support and made a nice upside move. The NZD/USD pair traded above the 0.6850 resistance and managed to settle above the 100 hourly simple moving average.
During the upside move, there was a break above a key bearish trend line with resistance at 0.6860 on the hourly chart. The pair traded as high as 0.6905 and is currently correcting lower. An initial support is near the 23.6% Fib retracement level of the last wave from the 0.6822 low to 0.6905 high.
However, the most important support is around 0.6860 and the 100 hourly SMA. The mentioned 0.6860 level was a resistance earlier and now it might act as a support. It also coincides with the 50% Fib retracement level of the last wave from the 0.6822 low to 0.6905 high.
Therefore, buying dips in the short term towards 0.6860 might be considered with a stop on a close below the 100 hourly SMA.
Originally published at — ForexGator.com.