NZD/USD Forecast Apr. 17-21 -

NZD/USD Forecast Apr. 17-21

Apr 16, 2017Jeremy ParkinsonFinance0

The New Zealand dollar hugged the 0.70 level once again. Will it choose a direction after Easter? Quarterly inflation figures stand out. Here is an analysis of fundamentals and an updated technical analysis for NZD/USD.

The Business NZ Manufacturing Index advanced to 57.8 points, but the FPI slipped. All in all, data from New Zealand was quite stable. NZD/USD rose higher after US President Donald Trump talked down the dollar. However, the greenback recovered, also buoyed by higher consumer confidence.

Updates:

NZD/USD daily graph with support and resistance lines on it. Click to enlarge:

GDT Price Index: Tuesday, during the European afternoon. The past two milk auctions were positive, after two big falls. However, these increases were not very impressive: 1.6% and 1.7%. The Global Dairy Trade has significant influence as milk is the nation’s key export.

CPI: Wednesday, 21:45. New Zealand releases its inflation figures only once per quarter, making the impact on the currency much stronger than in other countries. Consumer prices rose by 0.4% in Q4 2016 and could see an acceleration in Q1 2017.

* All times are GMT

NZD/USD Technical Analysis

Once again, kiwi/dollar hugged the 0.70 level (mentioned last week).

Technical lines, from top to bottom:

0.7380 was the high recorded back in February and is our top line for now. Below, we find 0.7250, which capped the pair back twice in mid-February and serves as a double top.

0.7160, which capped the pair back in November is a pivotal line within the range. 0.7125 had worked as a double bottom before it collapsed in early March.

0.7050 served as resistance during the month of March. The very round number of 0.70 is a battle zone. Further below, 0.6960 worked as support in November and then in January once again.

Further below, 0.6960 worked as support in November and then in January once again. The round number of 0.69 is weak support, and it is followed by 0.6865.