- The New Zealand Dollar after trading a few pips above 0.7050 found resistance against the US Dollar.
- The NZD/USD pair moved down, and broke a crucial bullish trend line at 0.7030 on the hourly chart.
- Recently, in the US, the Wholesale Inventories figure for April 2017 (Preliminary) released by the US Census Bureau posted a decline of 0.3%, which was better than the forecast of +0.2%.
NZDUSD Technical Analysis
The New Zealand Dollar after a small dip gained pace and moved above the 0.7000-0.7020 resistance against the US Dollar. The NZD/USD pair even traded above the 0.7050 level and formed a new high at 0.7056.
The pair faced offers, started a downside move below 0.7040 and the 23.6% Fib retracement level of the last wave from the 0.6987 low to 0.7056 high.
The most important break was below a crucial bullish trend line at 0.7030 on the hourly chart.
NZDUSD Hourly Chart
The pair even traded below the 61.8% Fib retracement level of the last wave from the 0.6987 low to 0.7056 high.
Somehow, the 0.7000 handle prevented losses and stopped the downside move, but NZD/USD remains at a risk of more declines.
At the moment, the pair is correcting higher towards 0.7030 where it may face sellers. Moreover, there is a connecting bearish trend line at 0.7040, which might prevent gains.
US Wholesale Inventories
Recently in the US, the Wholesale Inventories figure for April 2017 (Preliminary) was released by the US Census Bureau, The market was expecting the inventories to increase 0.2% in April 2017.
The actual result was better than the forecast, as there was a decline of 0.3% in the Wholesale Inventories. The US Initial Jobless Claims were also reported (May 12), which posted a decline from the last revised reading of 233K to 234K.
The report added that:
The advance seasonally adjusted insured unemployment rate was 1.4 percent for the week ending May 13, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending May 13 was 1,923,000, an increase of 24,000 from the previous week’s revised level.
Overall, the NZD/USD pair may move a few pips higher, but likely to face resistance near 0.7030-0.7040.