NZDUSD – Can New Zealand Dollar Hold 100 SMA Vs USD?31 March, 2017 by Aayush Jindal in Market Analysis
- The New Zealand Dollar recovered well from 0.6880 against the US Dollar, and now facing resistance near 0.7080.
- The NZDUSD pair recently failed to break a bearish trend line with resistance at 0.7060 on the 4-hours chart.
- The New Zealand Building Permits for Feb 2017 (MoM) released by the Statistics New Zealand posted a rise of 14%.
- Today, the US Personal Income for Feb 2017 (MoM) will be released by the Bureau of Economic Analysis, Department of Commerce, which is forecasted to increase by 0.4%.
NZDUSD Technical Analysis
The New Zealand dollar after recently settled above 0.7000, but failed near 0.7080 against the US dollar. It means NZDUSD might head lower and attempt a break below 0.6980.
The pair consolidated for a brief period above 0.7000, but failed to break a bearish trend line with resistance at 0.7060 on the 4-hours chart. On the downside, the pair remained supported above the 100 simple moving average (H4) at 0.6989.
The stated support also represents the 50% Fib retracement level of the last wave from the 0.6889 low to 0.7089 high. So, a break below won’t be easy for a move towards 0.6850.
As long as the 100 SMA at 0.6890-80 holds, the pair might make another attempt to break the highlighted bearish trend line. And, if there is a breakdown, the pair might head towards 0.6940.
New Zealand Building Permits
Today in New Zealand, the Building Permits for Feb 2017 (MoM) was released by the Statistics New Zealand. The market was positioned for a rise of around 0.4% in Feb 2017, compared with the previous month.
However, the result was positive, as there was an increase of 14% in the Building Permits in Feb 2017. It was a lot higher compared with the last revised reading of +2.1%.
Economic Releases to Watch Today
- UK GDP for Q4 2016 (YoY) – Forecast +2% versus +2% previous.
- Euro Zone CPI for March 2017 (YoY), Preliminary – Forecast +1.8%, versus 2% previous.
- Euro Zone Core CPI for March 2017 (YoY), Preliminary – Forecast +0.9%, versus 0.9% previous.
- US Personal Income for Feb 2017 – Forecast +0.4% (MoM) versus +0.4% previous.
- Canada’s GDP for Jan 2017 (MoM) – Forecast +0.3% versus +0.3% previous.