NZD/USD Technical & Fundamental Outlook | 17 Dec 2013

FXOpen

Suggestion for Trade: Sell @ 0.8295-0.8300 SL @ 0.8320 Target @0.8112

NZD/USD has been holding a range since last six working days thus making a small triangle formation and is likely to bounce off from upper trendline channel before resuming a downward slide as per technical outlook.

Major Support & Resistance Levels

At the moment of writing the Kiwi-Greenback pair is being traded at 0.8281 during Asian session where it is expected to find an immediate hurdle around 0.8295 (trendline resistance) ahead of 0.8300 (psychological level + 61.8% fib level), and then 0.8441 (76.4% fib level).

NZD/USD Technical & Fundamental Outlook | 17 Dec 2013

On downside, immediate support is seen around 0.8211 (channel support) ahead of 0.8180 (50% fib level) and then 0.8112 (200 DMA), a break and close below this level may push NZD/USD into relatively stronger bearish trend targeting 0.7923-0.7900 support area.

Technical Indicators

MACD is showing negative divergence at hourly timeframe suggesting a bearish reversal might be in play very soon. Relative Strength Index (RSI) is showing neutral readings which means there is a possibility of long movements in near future. 55 MA and 200 MA are at the same point on four hour timeframe which means break of upper trendline resistance may trigger bullish rally in Kiwi pair.

Fundamental Situation

We have some very important economic reports due later in the US session that may increase volatility in NZD/USD, those include:

  • US Consumer Price Index (YoY) Nov: Forecast 1.3%, Previous 1.0%
  • US Consumer Price Index (MoM) Nov: Forecast 0.1%, Previous -0.1%
  • Consumer Price Index Ex Food & Energy (MoM) Nov: Forecast 0.1%, Previous 0.1%
  •  Consumer Price Index Ex Food & Energy (YoY) Nov: Forecast 1.7%, Previous 1.7%
  • NAHB Housing Market Index (Dec): Forecast 55, Previous 54

Better than expected results will be bullish for the US Dollar and vice versa. Not to mention tomorrow is a big day for global financial markets as Federal Open Market Committee (FOMC) members are going to make decision about the future of ongoing asset purchase program.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis
Financial Market News
Forex Market Insights

AUD/USD Consolidates Gains While NZD/USD Dips

AUD/USD is consolidating gains near the 0.6420 zone. NZD/USD is trimming gains and struggling to stay above the 0.5945 pivot zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar started a

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.