NZD/USD Forecast — New Zealand Dollar Facing Major Resistance Vs US Dollar
- - The New Zealand Dollar faced a lot of sellers near the 0.7340–50 resistance against the US Dollar.
- - There is a major bearish trend line forming with resistance at 0.7350 on the hourly chart of the NZDUSD pair.
- - Today in New Zealand, the Employment Change report for Q4 2017 was released by the Statistics New Zealand.
- - The outcome was above the market forecast of 0.2% as there was a change of 0.5%, but less than the last 2.2%.
New Zealand Employment Change
Today in New Zealand, the Employment Change report for Q4 2017 was released by the Statistics New Zealand. The market was looking for a change of 0.2% in Q4 217 compared with the last change of 2.2%.
The actual result was above the market forecast of 0.2% as there was a change of 0.5%, but less than the last 2.2%. The unemployment rate dropped from the last reading of 4.6% to 4.5%. The report added that:
The unemployment rate for the December 2017 quarter remains considerably above New Zealand’s lowest unemployment rate, which was 3.3 percent, recorded a decade ago in the December 2007 quarter, immediately before the global financial crisis.
The NZD/USD pair failed to move above the 0.7340 and 0.7350 resistance levels, and started a downside move.
NZD/USD Technical Analysis
The New Zealand Dollar started a fresh upside wave from the 0.7256 low against the US Dollar. The NZD/USD pair traded above the 0.7280 and 0.7300 resistance levels to gain decent upside momentum.
The pair even moved above the 38.2% Fib retracement level of the last decline from the 0.7405 high to 0.7256 low. However, the upside move was capped by a major bearish trend line with resistance at 0.7350 on the hourly chart.
Moreover, the 61.8% Fib retracement level of the last decline from the 0.7405 high to 0.7256 low also acted as a resistance and prevented gains above the 0.7350 level. The pair is once again moving lower and is currently trading below the 0.7320 level.
If the pair fails to move higher above the 0.7340 and 0.7350 resistance levels, it remains at a risk of more declines below the 0.7300 level and towards 0.7260.
Originally published at — ForexGator.com.