- New Zealand Dollar traded near a major resistance area against the US Dollar and failed to gain traction.
- We were looking to sell the NZDUSD pair that played well, as the pair moved lower after testing an important bearish trend line and resistance area.
- Chinese Industrial output is released by the National Bureau of Statistics of China posted an increase of 5.6% in October 2015, which was on the lower side compared with the forecast of 5.8%.
- NZDUSD might continue to head lower if sellers remain in control.
The NZDUSD pair managed to gain traction recently and traded higher. However, there is a bearish trend line on the hourly chart that acted as a barrier for buyers and prevented gains. Moreover, the 61.8% Fib retracement level of the last drop from the 0.6642 high to 0.6499 low also served as a resistance.
The NZDUSD pair has now moved back below the 100 hourly simple moving average (MA), which is a bearish sign in the short term.
On the upside, the highlighted trend line and resistance area holds the key for more gains.
Chinese Industrial Production
Today, there were a few important releases scheduled in China. The first one was the Industrial output, which shows the volume of production of Chinese Industries such as factories and manufacturing facilities was reported by the National Bureau of Statistics of China. The market was expecting a rise of 5.8% in October 2015. However, the result was on the lower side, as the Chinese Industrial Production rose 5.6%. The Chinese Retail Sales on the other hand, was on the higher side as it gained by 11% as the market was expecting 10.9%.
Overall, the outcome was mixed, but failed to help the risk sentiment to a great extent.
Let us see how the NZDUSD pair trades moving ahead and whether it moves towards the 50 hourly MA or not.