NZDUSD – Can New Zealand Dollar Declining Streak Come To End?
Aayush Jindal
Key Highlights
The New Zealand dollar started a nasty decline after a failure to break the 0.7080 resistance against the US Dollar.
There is a monster descending channel pattern with current resistance at 0.6970 formed on the 4-hours chart of NZDUSD.
In New Zealand, the Electronic Card Retail Sales for March 2017 (MoM) reported by Statistics New Zealand posted a decline of 0.3%.
Today in the US, the NFIB Business Optimism Index for March 2017 will be released, which is forecasted to decline from 105.3 to 104.7.
NZDUSD Technical Analysis
The New Zealand dollar struggled a lot during the past few days, as it declined below 0.7000 against the US Dollar. The NZDUSD pair has established a solid downtrend, but it is approaching a major support at 0.6900.A major downside move was initiated once the pair failed to settle above the 0.7050-80 area. It moved below the 50% Fib retracement level of the last wave from the 0.6890 low to 0.7089 high. More importantly, there was a decline below 0.7000 and the 100 simple moving average (H4).The pair is following a monster descending channel pattern with current resistance at 0.6970 on the 4-hours chart. However, it is reaching a major support above 0.6900. The mentioned level may act as a barrier for sellers near 0.6910 or 0.6900. If the stated levels hold, the pair may attempt a recovery in the near term towards 0.7000.
New Zealand Electronic Card Retail Sales
Today in New Zealand, the Electronic Card Retail Sales for March 2017 (MoM) was reported by Statistics New Zealand. The market was aligned for a decline of around 0.5% in sales compared with the previous month.However, the real outcome was a bit better, as the Electronic Card Retail Sales decreased 0.3% in March (MoM). In terms of the yearly change, there was a rise of 5.6%, which was more than the last +2.6%.
Economic Releases to Watch Today
UK Retail Price Index March 2017 (YoY) – Forecast +3.2%, versus +3.2% previous.
UK Producer Price Index March 2017 (YoY) – Forecast +3.3%, versus +3.7% previous.
UK Consumer Price Index March 2017 (YoY) – Forecast +2.3%, versus +2.3% previous.
UK Core Consumer Price Index March 2017 (YoY) – Forecast +1.9%, versus +2.0% previous.
German ZEW Economic Sentiment Index for April 2017 – Forecast 14, versus 12.8 previous.
US NFIB Business Optimism Index March 2017 – Forecast 104.7, versus 105.3 previous.
A major downside move was initiated once the pair failed to settle above the 0.7050-80 area. It moved below the 50% Fib retracement level of the last wave from the 0.6890 low to 0.7089 high. More importantly, there was a decline below 0.7000 and the 100 simple moving average (H4).The pair is following a monster descending channel pattern with current resistance at 0.6970 on the 4-hours chart. However, it is reaching a major support above 0.6900. The mentioned level may act as a barrier for sellers near 0.6910 or 0.6900. If the stated levels hold, the pair may attempt a recovery in the near term towards 0.7000.
However, the real outcome was a bit better, as the Electronic Card Retail Sales decreased 0.3% in March (MoM). In terms of the yearly change, there was a rise of 5.6%, which was more than the last +2.6%.