New Zealand Dollar Faces Tough Task Ahead
Titan FX | Nov 21, 2016 09:10PM ET
Key Highlights
· The New Zealand Dollar traded lower recently below 0.7100 against the US dollar, and remained under a bearish pressure.
· There is a bearish trend line on the 4-hours chart of NZD/USD, which may act as a hurdle for the pair near 0.7060-80.
· There is also a strong resistance near the same levels, waiting to provide offers.
· Recently, the Chicago Fed National Activity Index (CFNAI), released by Federal Reserve Bank of Chicago posted a reading of -0.08 in Oct 2016.
NZD/USD Technical Analysis
The New Zealand dollar remained in a downtrend against the US dollar, and also broke the 0.7100 handle once. The NZD/USD pair is currently recovering, but may face sellers on the upside.
The pair recently traded above the 38.2% Fib retracement level of the last decline from the 0.7144 high to 0.6985 low. So, it may trade further higher, but there is a bearish trend line on the 4-hours chart, waiting to act as a resistance near 0.7060-80.
The stated levels also represent a strong pivot area, so it won’t be easy for the pair to beak it. Moreover, the 61.8% Fib retracement level of the last decline from the 0.7144 high to 0.6985 low is also just around the same levels. So, a move above the 0.7080 resistance won’t be easy.
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