Forex Market: NZD/USD daily forecast

During yesterday’s trading session NZD/USD traded within the range of 0.8430-0.8531 and closed at 0.8440, losing 0.96% on a daily basis.

At 11:16 GMT today NZD/USD was losing 0.28% for the day to trade at 0.8444. The pair touched a daily low at 0.8424 at 1:00 GMT, the weakest since June 5th.

Fundamental view

The deficit on US trade balance probably widened to 44.900 billion USD during June from a deficit of 44.392 billion USD, registered in May. The trade balance, as an indicator, measures the difference in value between country’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form country’s Gross Domestic Product. Generally, exports reflect economic growth, while imports indicate domestic demand. In case the trade balance deficit contracted more than anticipated, this would provide support to US dollar. The Bureau of Economic Analysis will release the official figures at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.8467. In case NZD/USD manages to breach the first resistance level at 0.8504, it will probably continue up to test 0.8568. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8605.

If NZD/USD manages to breach the first key support at 0.8403, it will probably continue to slide and test 0.8366. With this second key support broken, the movement to the downside will probably continue to 0.8302.

In weekly terms, the central pivot point is at 0.8512. The three key resistance levels are as follows: R1 – 0.8563, R2 – 0.8611, R3 – 0.8662. The three key support levels are: S1 – 0.8464, S2 – 0.8413, S3 – 0.8365.