Home NZD/USD risks bear flag breakdown on trade war fears, NIEZR forecasts
FXStreet News

NZD/USD risks bear flag breakdown on trade war fears, NIEZR forecasts

  • NZD/USD slips on trade war fears, downward revision of NZ growth forecasts.
  • A daily close below 0.6924 would confirm a bear flag breakdown.

The NZD/USD pair is on the defensive, courtesy of US-China trade war fears and slightly softer New Zealand growth outlook for the next few years.

As of writing, the NZD/USD is down 0.36 percent and risks falling below 0.6924 (bear flag support) in a convincing manner on signs of risk aversion in financial markets. At press time, the S&P 500 futures are flashing red – down 0.41 percent.

US-China tit-for-tariffs have brought world’s two biggest economies closer to a full-fledged trade war.

The NZD, being a risk currency, is likely being offered on trade war fears. Also, a slight downward revision to the growth outlook by the New Zealand Institute of Economic Research  (NZIER) is seemingly adding to the bearish pressure around Kiwi.

NZD/USD Technical Levels

A daily close below 0.6924 would confirm a bear flag breakdown and signal a resumption of the sell-off from the April 13 high of 0.7395.

Key support: 0.6882 (May 30 low), 0.6851 (May 16 low).

Key resistance: 0.6975 (5-day moving average), 0.7004 (10-day moving average).

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.