Fundamental Analysis of NZD/USD for March 17, 2017
March 17, 2017 6:34 am
NZD/USD had a long non-volatile bearish trend since it had bounced from the resistance area near 0.7240. However, after the FOMC had announced its decision to hike the rate, USD showed some bearish interference in the market. Today, New Zealand posted the Business Manufacturing Index which showed a stable increase from the previous reading of 52.2 to 55.2. Speaking about USD, it will also see some key events today such as the G20 meeting and the Preliminary UoM Consumer Sentiment which previously was at 96.3 and is expected to rise to 97.1. Besides, the Industrial Production report is due to be revealed. Previously it was at -0.3% but today a positive result of 0.3% is expected. So, this day is quite important for USD as some crutial high-impact data is going to be published.
Now let us look at the technical picture. The price found the resistance at 20 EMA yesterday after an impulsive bullish move of USD triggered by the interest rate hike decision. Currently, the price is in the middle of the structure and a much deeper decline is expected towards 0.6900 area within yesterday’s bearish impulsive move. On the other hand, if the price breaks above the recent high at 0.7050 with a daily close, we will be expecting bullish move towards the resistance at 0.7130.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
NZD/USD had a long non-volatile bearish trend since it had bounced from the resistance area near 0.7240. However, after the FOMC had announced its decision to hike the rate, USD showed some bearish interference in the market. Today, New Zealand posted the Business Manufacturing Index which showed a stable increase from the previous reading of 52.2 to 55.2. Speaking about USD, it will also see some key events today such as the G20 meeting and the Preliminary UoM Consumer Sentiment which previously was at 96.3 and is expected to rise to 97.1. Besides, the Industrial Production report is due to be revealed. Previously it was at -0.3% but today a positive result of 0.3% is expected. So, this day is quite important for USD as some crutial high-impact data is going to be published.
Now let us look at the technical picture. The price found the resistance at 20 EMA yesterday after an impulsive bullish move of USD triggered by the interest rate hike decision. Currently, the price is in the middle of the structure and a much deeper decline is expected towards 0.6900 area within yesterday’s bearish impulsive move. On the other hand, if the price breaks above the recent high at 0.7050 with a daily close, we will be expecting bullish move towards the resistance at 0.7130.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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