NZD/USD: Kiwi Dollar Remains at Risk for Key Reasons
Key Highlights · The New Zealand Dollar traded lower against the US Dollar recently, and was under a lot of bearish pressure. · There was a monster bullish trend line formed on the 4-hours chart of the NZD/USD pair, which was surpassed by sellers during the recent losses. · The NZD/USD pair also traded below the 100 simple moving average (H4 chart), which is a strong bearish sign. · The New Zealand Trade balance, released by Statistics New Zealand posted a trade deficit of -3,310M in June 2016.
NZD/USD Technical Analysis The New Zealand dollar was under a lot of bearish pressure against the US Dollar, as NZD/USD broke down to trade below 0.7050. Can the pair recover moving ahead?
NZD/USD 4 Hourly Chart
As mentioned, the pair moved down, but the highlight was break below a monster bullish trend line formed on the 4-hours chart. Moreover, the pair also traded below the 100 simple moving average on the same chart.
The recent low was 0.6951 in NZD/USD. If the pair corrects higher from the current levels, then it may find sellers near the 23.6% fib retracement level of the last drop from the 0.7324 high to 0.6951 low.