NZD/USD Forecast — New Zealand Dollar to Decline Further Vs US Dollar
- - The New Zealand Dollar struggled to move above the 0.7020 level and moved down against the US Dollar.
- - There is a descending channel forming with current support at 0.6955 on the hourly chart of the NZDUSD pair.
- - Today in New Zealand, the Trade balance report for Nov 2017 was released by Statistics New Zealand.
- - The outcome was below the market forecast of $-2.700B as there was a trade deficit of $-3.444B (YoY).
New Zealand Trade Balance
Today in New Zealand, the Trade balance report for Nov 2017 was released by Statistics New Zealand. The market was looking for a trade deficit of $-2.700B compared with the same month a year ago.
The actual result was below the market forecast of $-2.700B as there was a trade deficit of $-3.444B. The Imports of goods and services in Nov 2017 came in at $5.82B, better than the forecast of $5.10B. Moreover, the Exports of goods and services in Nov 2017 came in at $4.63B, better than the forecast of $4.61B.
Overall, the NZD/USD pair is currently under a bearish pressure and is struggling to hold the 0.6950–55 support area.
NZD/USD Technical Analysis
The New Zealand Dollar was seen trading with a positive bias above the 0.7000 level against the US Dollar. However, the NZD/USD pair failed to move above the 0.7030 resistance area and later started a downside move below the 100 hourly simple moving average.
The pair declined and moved below the 0.7000 and 0.6980 support levels. The decline was protected by the 0.6950 support area and it seems like there is a descending channel forming with current support at 0.6955 on the hourly chart.
The channel support is currently holding losses in NZD/USD below 0.6950. An initial resistance on the upside is around the 23.6% Fib retracement level of the last decline from the 0.7018 high to 0.6956 low. However, the most important resistance is around 0.7000 and the 100 hourly SMA.
Overall, it seems like the NZD/USD pair might correct a few pips higher, but it might struggle to move above the 0.7000 and 0.7020 resistance levels in the near term.
Originally published at — ForexGator.com.