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Home » Technical Analysis » Daily » NZDUSD – New Zealand Dollar Heading Towards Resistance

NZDUSD – New Zealand Dollar Heading Towards Resistance

Posted by FXTimes in Daily - September 14th, 2016 8:50 am GMT

New Zealand dollar NZDUSD

Key Points

  • The New Zealand Dollar is currently correcting higher after a decline towards 0.7234 versus the US Dollar.
  • However, the NZDUSD pair is likely heading towards a resistance in the form of a bearish trend line on the hourly chart.
  • Today, the New Zealand Current Account report was released by the Statistics New Zealand.
  • The Current account in Q2 2016 posted a trade deficit of $-0.945B, more than the forecast.

NZDUSD Technical Analysis

The New Zealand dollar declined recently and traded as low as 0.7234 versus the US Dollar. The NZDUSD pair then started a correction, and moved above the 23.6% Fib retracement level of the last drop from the 0.7364 high to 0.7234 low.

NZDUSD Technical Analysis

However, the pair is likely heading towards a resistance area in the form of a bearish trend line on the hourly chart along with the 21 hourly simple moving average.

One may consider selling rallies near the trend line resistance, as long as the pair is below the 21 hourly SMA.

New Zealand Current Account

Today in New Zealand, the Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of New Zealand was released by the Statistics New Zealand. The forecast was slated for a trade deficit of $-0.411B in Q2 2016, compared with the previous quarter.

The result was on the lower side, as the current account posted a trade deficit of $-0.945B. The report added that “Record spending by New Zealanders travelling overseas was behind a larger current account deficit in the June 2016 quarter. The current account deficit was $1.8 billion for the June quarter, $187 million larger than the March 2016 quarter’s deficit”.

Overall, the New Zealand dollar may remain under a bearish pressure against the US Dollar and could trade back lower.

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