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Market Analysis

Home » Technical Analysis » Daily » NZDUSD – New Zealand Dollar Setting Up For More Losses

NZDUSD – New Zealand Dollar Setting Up For More Losses

Posted by FXTimes in Daily - June 27th, 2016 11:36 am GMT

New Zealand dollar NZDUSD

Key Points

  • New Zealand dollar after correcting from the 0.6970 low against the US dollar found sellers near 0.7150.
  • The NZDUSD just broke a bullish trend line on the hourly chart, which may ignite more losses.
  • The New Zealand Trade Balance released by the Statistics New Zealand posted a trade surplus of $358M in May 2016.
  • In terms of the yearly change, there was a trade deficit of $-3.633B in May 2016.

Technical Analysis 

The NZDUSD pair after a sharp fall towards the 0.6970 area after the Brexit decision found support and corrected higher. However, the upside correction stalled near the 200 hourly simple moving average, which acted as a barrier for the bulls.

NZDUSD

The pair is currently moving down, and also broke a bullish trend line on the hourly chart. So, there are chances that the pair may resume its downtrend and test the 0.7020 support area.

On the upside, the 200 hourly simple moving average may continue to act as a resistance area.

New Zealand Trade Balance

Today in New Zealand, the Trade balance report was released by Statistics New Zealand. The outcome was not impressive, as the difference between the value of country’s exports and imports, over a period of year posted a trade deficit of $-3.633B in May 2016.

Commenting on the report, the international statistics senior manager Nicola Growden stated, “The latest rise in the value of consumer goods continues a series of month-on-month increases. The rise was across a broad range of consumer goods, including clothing, cosmetics, household appliances, furniture, and medicines.”

Overall, it does not look good for the NZDUSD pair in the near term, and more losses are likely.

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