NZD/USD – New Zealand Dollar Eyeing Break above 0.734029 June, 2017 by Aayush Jindal in Market Analysis
- The New Zealand Dollar traded with a positive bias recently and moved above 0.7250 against the US Dollar.
- There is a crucial bullish trend line with support at 0.7275 forming on the 4-hours chart of NZD/USD.
- Today in New Zealand, the Business Confidence for June 2017 released by the ANZ posted an increase from 14.9 to 24.8.
- Today in the US, the Gross Domestic Product for Q1 2017 will be released, which is forecasted to increase by 1.2% (Annualized).
NZDUSD Technical Analysis
The New Zealand Dollar maintained a decent bullish trend and moved above 0.7250 against the US Dollar. The NZD/USD pair is currently moving higher and looking to break the 0.7340 resistance.
Looking at the 4-hours chart of NZD/USD, it is quite clear that the pair started a major uptrend from the 0.7000 handle. It traded above a few key levels like 0.7100 and 0.7200.
It is currently following a crucial bullish trend line with support at 0.7275. The pair recently corrected lower from 0.7343 and almost tested the trend line support.
It is moving back higher after testing the 61.8% fib retracement level of the last leg from the 0.7196 low to 0.7343 high. It looks like a correction wave is complete and the pair may soon trade above 0.7340 in the near term. A new high above 0.7350 is also possible if NZD buyers remain in control going forward.
ANZ Business Confidence
Today in New Zealand, the Business Confidence for June 2017 was released by the ANZ. The forecast was lined up for a minor increase of from the last reading of 14.9 to 20.0 in June 2017.
However, the actual result was much better, as there was a sharp increase from 14.9 to 24.8. The ANZ business outlook activity also posted a decent improvement and came in at 42.8%, up from the last 38.3%.
The report added that:
The economy has good upwind speed. A net 25% of businesses are optimistic about the year ahead. That’s up 10 points on the month prior and is the highest level since September 2016. Sentiment lifted across all sectors but most notably for agriculture. The service sector sits at the bow (+33).
The overall market sentiment for NZD/USD is very bullish, which puts it at a risk of further gains above 0.7340 in the near term.