Nzdusd - page 6

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The NZDUSD needs to gain a lot of bearish momentum if it is to reach the 0.8500 level, but for now we may see a pullback to the 0.8600 level from where we may get an opportunity of a short entry.

 
fxstrategist:
The NZDUSD needs to gain a lot of bearish momentum if it is to reach the 0.8500 level, but for now we may see a pullback to the 0.8600 level from where we may get an opportunity of a short entry.

Good call Almost to the pip

 

Will the NZDUSD drop all the way to the 0.8500 level? The channel has been slowly turning down.

 

NZD/USD Forecast May 26-30

The New Zealand dollar surrendered to the strength of the US dollar and dropped sharply. It is now trading in a downtrend channel. Will this trend continue? Trade balance and business confidence are the main events. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD.

Producer prices rose stronger than expected in Q1, with PPI Input rising 1%. Also inflation expectations moved higher. Nevertheless, the kiwi surrendered to the move higher of the US dollar. While the FOMC minutes did not consist of big surprises, it seems clear that the central bank already looks towards the days after QE.

  1. Trade Balance: Sunday, 22:45. New Zealand has enjoyed trade surpluses in the past few months, with figures usually exceeding expectations. After +920 million in March, a smaller surplus of around 630 million is predicted.
  2. ANZ Business Confidence: Wednesday, 1:00. This survey of around 1500 business reached a multi-decade high of 70.8 points in February, but has fallen since then. From 64.8 seen in April, a moderate drop is likely now in this influential figure.
  3. Building Consents: Thursday, 22:45. While month over month changes are huge, this volatile indicator has a strong impact on the kiwi. After a leap of 8.3% in March, a small drop is due for April.

* All times are GMT.

 

There is a good support on the Kiwi around the 86.31 zone, there is still a chance of seeing a bounce to the upside from here.

 

I expect the NZD/USD to rise from the current level.

Growth in New Zealand remains steady and close to its trend rate. With improving state of the financial sector and rising real incomes, I expect continued expansion of industrial activity in New Zealand going forward. The growth rate in New Zealand relative to the US will likely maintain substantial appreciation pressure for the NZD.

 

Interesting visit of the NZDUSD to the 200 Day Exponential Moving Average around the 0.8420 level. We could still see a bounce to the upside from this zone.

 

Great movements on the NZDUSD. more than a 50 pips bounce from the 0.8550 level to just below the 0.8500 level.

 

Very good bounce to the downside on the NZDUSD from the 0.8700 level. So far it has dropped more than 60 pips. Lets see if the correction continues during next week.

 
fxstrategist:
Very good bounce to the downside on the NZDUSD from the 0.8700 level. So far it has dropped more than 60 pips. Lets see if the correction continues during next week.

Are you predicting that it will not continue the trend change?

I am looking at daily chart and it looks like it is in a process of changing trend to bullish. What is your opinion?

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