NZD/USD – New Zealand Dollar Breaks Key Support Vs US Dollar?11 July, 2017 by Aayush Jindal in Market Analysis
- The New Zealand Dollar struggled to break the 0.7345 resistance against the US Dollar and started correcting towards 0.7200.
- There was a break below a crucial bullish trend line with support at 0.7250 on the 4-hours chart of NZD/USD.
- Today in New Zealand, the Electronic Card Retail Sales for June 2017 reported by Statistics New Zealand posted no change (MoM).
- Today in the US, the Wholesale Inventories report for May 2017 will be released, which is expected to post a growth of 0.3%.
NZDUSD Technical Analysis
The New Zealand Dollar made a short-term top near 0.7345 on July 03, 2017 against the US Dollar. The NZD/USD pair is correcting, and broke a major support area at 0.7240.
There was a break below a crucial bullish trend line with support at 0.7250 on the 4-hours chart. The 0.7250-0.7260 support was also near the 100 simple moving average (H4). Therefore, a break below the same holds a lot of importance and might take the pair towards 0.7200.
Earlier, there was a failure to break the 61.8% Fib retracement level of the last decline from the 0.7345 high to 0.7243 low, which ignited a breakdown.
On the upside, the 0.7250 level is an initial resistance followed by the most important hurdle for buyers at 0.7300 and 0.7320.
On the downside, the pair may now attempt a test of the 0.7200 handle or the 200 simple moving average (H4). Any further declines could take the pair towards 0.7180.
New Zealand Electronic Card Retail Sales
Today in New Zealand, the Electronic Card Retail Sales for June 2017 was reported by Statistics New Zealand. The market was positioned for an increase of 0.8%, compared with the previous month.
The actual result was negative, as there was no change in sales. In terms of the yearly change, the expectation was +5.2% in June 2017. However, the result was lower, as the increase was of 4.5%. It impacted the market sentiment for the Kiwi Dollar, and it tumbled below 0.7250 vs the USD.
Overall, the NZD/USD pair is heading lower after a crucial break, and as long as the 0.7250 resistance is intact it may test 0.7200.