The New Zealand dollar drifted in range on the week of Christmas and made its way up. There are no events this week, but markets still move. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD.
New Zealand trade balance came out a bit better than expected, and that gave some support to the kiwi. However, it enjoyed the weakness of the greenback to ride higher.
[do action=”autoupdate” tag=”NZDUSDUpdate”/]NZD/USD daily graph with support and resistance lines on it. Click to enlarge:
NZD/USD Technical Analysis
Kiwi/dollar traded in the range above 0.67 (mentioned last week).
Live chart of NZD/USD:
[do action=”tradingviews” pair=”NZDUSD” interval=”60″/]Technical lines, from top to bottom:
0.7075 is where the pair found support back May. It is naturally followed by the very round level of 0.70.
The low of 0.6940 allowed for a temporary bounce. The round 0.69 level has switched positions to resistance.
0.6860 was a low point as the pair dropped in June 2015. It is followed by 0.6790 that capped the pair in recent months.
It is followed by the round level of 0.67 that works nicely as support. Another line worth noting is 0.6640, which capped the pair in November.
The post crisis low of 0.6560 is still of importance. Below, the round 0.65 level is of high importance now, serving as support.
I am neutral on NZD/USD
On one hand, the US dollar is enjoying support thanks to the Fed’s hike, but on the other hand New Zealand enjoys a solid economy. On this holiday week, not much is expected to happen.
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Further reading:
- For a broad view of all the week’s major events worldwide, read the USD outlook.
- For EUR/USD, check out the Euro to Dollar forecast.
- For the Japanese yen, read the USD/JPY forecast.
- For GBP/USD (cable), look into the British Pound forecast.
- For the Australian dollar (Aussie), check out the AUD to USD forecast.
- For USD/CAD (loonie), check out the Canadian dollar forecast.
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