A Downward Drift for NZDUSD21 May, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
- US Dollar failed to gain buyers after the FOMC meeting minutes, and currently looks like positioning for a correction.
- NZDUSD managed to find support around 0.7280, and currently testing an important resistance area.
- New Zealand Visitor Arrivals released by the Statistics New Zealand posted an increase of 6.1% in April 2015, compared to the previous rise of 15.1%.
NZDUSD – Technical Analysis
The New Zealand Dollar declined sharply recently against the US dollar, but later managed to gain traction around the 0.7280 support area. The NZDUSD is currently attempting to correct higher, and it would be interesting to see how sellers react in the short term. There are a couple of bearish trend lines formed on the hourly chart, which might act as a hurdle for buyers.
A critical resistance is around the upper bearish trend line, i.e. also aligned with the 38.2% Fib retracement level of the last drop from the 0.7443 high to 0.7280 low. The hourly RSI is approaching the 50 mark, which suggests that the pair is heading towards a crucial swing area.
On the downside, the 0.7280 support area holds the key as it represents a major barrier for sellers.
New Zealand Visitor Arrivals
Earlier during the Asian session, the Visitor Arrivals, which measures the number of visitors to New Zealand was released by the Statistics New Zealand. The outcome was lower when compared to the last increase of 15.1%. In April 2015, the New Zealand Visitor Arrivals rose by 6.1%, compared to the same month a year ago.
Commenting on the same, the population statistics manager, Vina Cullum, stated that “the annual number of visitors from China topped 300,000 for the first time, and the 302,100 visitor arrivals from China in the April 2015 year were up 26 percent from the previous year. Most of this increase was holidaymakers”.
The NZDUSD traded a bit higher after the release and as of writing heading towards the highlighted resistance area.
US Existing Home Sales
In the US, there are a couple of important releases scheduled today, including the Existing Home Sales, which will be published by the National Association of Realtors. The forecast is lined for a 1% increase in April 2015, compared to the preceding month.