Forex Market: NZD/USD daily forecast

During yesterday’s trading session NZD/USD traded within the range of 0.8530-0.8561 and closed at 0.8549.

At 8:34 GMT today NZD/USD was losing 0.40% for the day to trade at 0.8513. The pair touched a daily low at 0.8508 at 6:40 GMT, breaching the two key daily support levels.

Fundamental view

New Zealand

At 22:45 GMT Statistics New Zealand is to report on the number of building approvals for new projects in construction during June. In May compared to April building permits, issued by the government, were 4.6% less. Building approvals are considered as a leading fundamental indicator, as they provide information regarding demand in New Zealand’s housing sector. A higher than anticipated number would have a bullish effect on the national currency.

United States

Home values in 20 large cities throughout the United States probably rose at an annualized rate of 9.9% in May, preliminary analysts’ estimates showed. In April, home prices climbed at a rate of 10.82%, that was the weakest since February 2013. S&P/Case-Shiller will release the official rate at 13:00 GMT. Higher than expected reading would bolster greenbacks demand.

At the same time, confidence among US consumers probably improved in July. The corresponding index probably rose to a reading of 85.5 from 85.2 in June. The Conference Board research group is to announce the results from its survey, encompassing over 5 000 households in the country, at 14:00 GMT. If the gauge of confidence shows a better than expected performance, this would certainly heighten the appeal of the US dollar.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.8547. In case NZD/USD manages to breach the first resistance level at 0.8563, it will probably continue up to test 0.8578. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8594.

If NZD/USD manages to breach the first key support at 0.8532, it will probably continue to slide and test 0.8516. With this second key support broken, the movement to the downside will probably continue to 0.8501.

In weekly terms, the central pivot point is at 0.8605. The three key resistance levels are as follows: R1 – 0.8670, R2 – 0.8786, R3 – 0.8851. The three key support levels are: S1 – 0.8489, S2 – 0.8424, S3 – 0.8308.