24 Jul 2013
NZD/USD reaching higher at 0.7996 ahead of data; 0.8053 resistance looms
FXstreet.com (Barcelona) - After posting a low on 7/5 at 0.7686, the NZD/USD has bounced in what may be an “abc” correction to the upside with 0.8053 as the projected stopping point. Will some New Zealand economic data due out Wednesday propel the Kiwi higher in the short-term?
Trade balance data out of New Zealand early Wednesday could move NZD/USD
At 22:45 GMT Tuesday night, New Zealand’s trade balance data will be released for public consumption. Expectations are for a deficit of $100 million versus a surplus of $71 million in the previous month and after a string of four monthly surpluses. Any upside surprise would be welcomed by NZD bulls. However most of the fuel for the recent NZD/USD rally has come from Ben Bernanke and a flow of DXY-bearish data over the last two weeks.
NZD/USD key technical levels
Unfortunately for the NZD/USD bulls, according to most technicians, unless 0.8053 is conquered on a closing basis this rally will have been nothing more than a bear market bounce. If a breakout above that level occurs, the next resistance will come into play at 0.8182. Short-term support for NZD/USD comes in at the intraday low from Tuesday at 0.7953 and is followed by Monday’s low print at 0.7904. Daily chart support comes in at the Tuesday / Wednesday lows at around 0.7850 and then the 7/12 closing low at 0.7772.
Trade balance data out of New Zealand early Wednesday could move NZD/USD
At 22:45 GMT Tuesday night, New Zealand’s trade balance data will be released for public consumption. Expectations are for a deficit of $100 million versus a surplus of $71 million in the previous month and after a string of four monthly surpluses. Any upside surprise would be welcomed by NZD bulls. However most of the fuel for the recent NZD/USD rally has come from Ben Bernanke and a flow of DXY-bearish data over the last two weeks.
NZD/USD key technical levels
Unfortunately for the NZD/USD bulls, according to most technicians, unless 0.8053 is conquered on a closing basis this rally will have been nothing more than a bear market bounce. If a breakout above that level occurs, the next resistance will come into play at 0.8182. Short-term support for NZD/USD comes in at the intraday low from Tuesday at 0.7953 and is followed by Monday’s low print at 0.7904. Daily chart support comes in at the Tuesday / Wednesday lows at around 0.7850 and then the 7/12 closing low at 0.7772.