The New Zealand dollar dropped under the weight of the greenback and settled in a lower range. Trade balance and the annual budget release are this week’s events. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD. There were quite a few releases in New Zealand in the past week, but they basically balanced each other. Inflation expectations remained unchanged at 1.6%, milk prices advanced by 2.6% but PPI Input fell by 1%. On the other side of the Pacific, the Fed’s meeting minutes were hawkish boosting the US dollar on higher expectations for a rate hike in June. [do action=”autoupdate” tag=”NZDUSDUpdate”/]NZD/USD daily graph with support and resistance lines on it. Click to enlarge: Trade Balance: Tuesday, 22:45. New Zealand enjoyed a surplus in its trade balance in recent months, standing at 117 million in March. Will it remain positive. Annual Budget Release: Thursday, 2:00. The government presents its new budget and for markets it means fresh growth and inflation forecasts that always impact the currency. Fiscal stimulus could substitute monetary stimulus, but a relatively balanced budget is expected. NZD/USD Technical Analysis Kiwi/dollar dropped lower and established itself between 0.6720 to 0.6840. Technical lines, from top to bottom: 0.7160 worked as support when the kiwi was trading on much higher ground in 2014. 0.7050 was the high in April 2015. The round level of 0.70 is still important because of its roundness but it isn’t really strong. The low of 0.6940 allowed for a temporary bounce. The round 0.69 level has switched positions to resistance. 0.6840 capped the pair during May 2016 and tops the range. 0.6720 is the low seen in May 2016 more than once providing the lower bound. 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 remain bearish on NZD/USD The US dollar could continue its uptrend for another week and while the kiwi is certainly not the weakest link, it isn’t too strong either. In our latest podcast we examine the road to a June hike (or not) Follow us on Sticher or on iTunes Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam MinorsNZD/USD Forecast share Read Next AUD/USD Forecast May 23-27 Kenny Fisher 6 years The New Zealand dollar dropped under the weight of the greenback and settled in a lower range. Trade balance and the annual budget release are this week's events. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD. There were quite a few releases in New Zealand in the past week, but they basically balanced each other. Inflation expectations remained unchanged at 1.6%, milk prices advanced by 2.6% but PPI Input fell by 1%. On the other side of the Pacific, the Fed's meeting minutes were hawkish boosting the US dollar on higher expectations for a rate… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.