The main highlights
The NZD / USD started a steady decline below 0.65050 and 0.66600 support levels.
- A larger descending channel is formed with resistance near 0.666 on the 4-hour chart.
- New Zealand’s trade balance in July 2020 (YoY) was a deficit of $ -0.12 B.
- US orders for durable goods may rise 4.3% in July 2020.
NZD / USD Technical Analysis
In the last few days, the New Zealand Dollar started a sharp fall from the 0.600 resistance against the US Dollar. NZD / USD broke support levels 0.6650 and 0.6600 to move into a bearish zone.
Looking at the 4-hour chart, the pair followed a bearish path from well above 0.6650. There was also a close below 0.666 and the 100 simple moving average (red, 4 hours).
The pair even peaked below the 0.60000 support and traded at a new monthly low of 0.6488. Recently, there was an upward correction above the level of 0.6520. The pair climbed above the 23.6% Fib retracement level of the recent fall from 0.6650 high to 0.6488 low.
However, the pair faces obstacles near the levels of 0.6570 and 0.6600. The 50% Fib retracement level for the recent fall from 0.6650 high to 0.6488 low is also close to 0.6570 level to act as a resistance.
More importantly, there is a larger descending channel formed with resistance near 0.666 on the same chart. Therefore, the pair must climb above 0.6600 to move into a positive zone.
If not, there is a risk of more losses below 0.6500 support zone. The next support is near 0.6480, below which NZD / USD can test 0.6450.
Looking at EUR / USD, the pair needs to gain pace above 1.1850 for a fresh rise. Similarly, GBP / USD faces obstacles near 1.3200 and 1.3250.
Upcoming financial announcements
- US Permanent Orders for July 2020 – Forecast + 4.3% vs. + 7.6% Earlier.
- US durable goods orders ex Transport in July 2020 – Forecast + 2.0% against + 3.6% earlier.