The New Zealand dollar is currently struggling against the US Dollar, and it looks like NZDUSD is about to break a crucial support at 0.6970.
NZDUSD Weekly Analysis – NZ Dollar About To Break Crucial Support
· New Zealand dollar faced a lot of sellers recently, and traded below 0.7000.
· There is a monster support at 0.6970 in NZDUSD, which the pair has almost broken.
· Today, the New Zealand ANZ Business Confidence released by the ANZ posted a rise from 20.5 to 21.7 in Dec 2016.
NZDUSD Technical Analysis
It was a bad week for the New Zealand dollar this past week, as it traded below a couple of important support levels against the US Dollar like 0.7100 and 0.7000. At present, the NZDUSD pair is under a lot of bearish pressure, and attempting to break a crucial support at 0.6970-50.
The stated level represents a major support, as it acted as a barrier for sellers many times earlier. So, a close below it could ignite more losses in NZDUSD, may be towards 0.6900.
The next stop on the downside may be around the 1.236 extension of the last wave from the 0.6971 low to 0.7238 high. So, it looks like a bearish wave structure with a fib target in sight.
Trade Idea – If you are looking to enter a sell trade, then consider it near the 0.7000 handle with a stop of a daily close above the same.
Today, the New Zealand ANZ Business Confidence was released by the ANZ. The forecast was slated for no major improvement in Dec 2016.
The result was as forecasted, as there was a minor increase from the last reading of 20.5 to 21.7 in Dec 2016. The report highlighted that a “net 22% of businesses are optimistic about the year ahead, up 1 point on the month prior. The construction sector is the most optimistic and manufacturing the least, but all sectors sit on the positive side of the ledger“.
The result failed to help the Kiwi dollar, and it looks like heading lower towards 0.6900 in the short term. The overall trend is bearish looking at the daily chart of NZDUSD, as the pair is also well below its’ negative territory.