Key Points
- The New Zealand Dollar is currently facing resistance near 0.7080 against the US Dollar.
- There is a crucial breakout pattern formed on the hourly chart of NZDUSD with support on the downside at 0.7050.
- Today during the Asian session, the MNI China Business Sentiment Indicator was released.
- The outcome was better than the forecast, as there was an increase from 52.2 to 53.1 in November 2016.
NZDUSD Technical Analysis
The New Zealand dollar traded higher recently towards the 0.7080 level against the US Dollar. However, the NZDUSD pair faced sellers near the stated level, and the pair is currently trading lower.
There is a breakout pattern formed on the hourly chart of NZDUSD, which may ignite the next move. On the downside, the trend line is coinciding with the 21 hourly simple moving average and the 50% Fib retracement level of the last leg from the 0.7032 low to 0.7080 high.
So, the trend line support holds a lot of importance, and if the pair breaks it, there can be an increase in the bearish pressure. In that case, the pair may even trade towards the 0.7020 level or 0.7010.
MNI China Business Sentiment Indicator
Today during the Asian session, the MNI China Business Sentiment Indicator, which is based on a monthly poll of Chinese business executives, tracks and predicts Chinese economic conditions was published.
The market was not anticipating an increase in the index in November 2016. However, the result was positive, as there was an increase to 53.1 from 52.2. The market sentiment was mostly favoring the US dollar, which may continue to gain traction.
Overall, there is a chance that the NZDUSD pair may break the trend line support area at 0.7050 and trade lower.
