The New Zealand dollar is struggling to extend Friday’s gains against the greenback as we head into Monday’s trade session. The NZD/USD currency exchange rate is trading around 0.7040 after see two weeks in a row of heavy selling pressure.
Right now, the NZD/USD Forex market is struggling around the fifty percent Fibonacci level and near a above a falling short-term falling trend line.
Over the weekend, commentary from U.S. Treasury Secretary Janet Yellen and Federal Reserve Bank of Minneapolis President Neel Kashkari spoke about possible more stimulus for the U.S. economy. This would be to bring rising inflationary pressures in the United States under control.
On Friday, the University of Michigan consumer sentiment index, which was for the initial look for November, fell to a ten year low.
The economic calendar is quiet today. The United States has no economic data scheduled for release on Monday. The Eurozone will publish monthly trade numbers. Germany, will publish monthly WPI data. Rightmove will release their monthly housing price index for the United Kingdom.
Daily New Zealand Dollar Technical Analysis
Looking at the above four hour MT 4 price chart, the MACD histogram and the relative strength index (RSI) look constructive signaling more possible gains for the New Zealand dollar.
On the upside, the two hundred (200) hour simple moving average is the first resistance level and on the downside immediate support lines up at 0.7025.
With the upward sloping technical indicators, both the RSI and MACD, a rebound higher towards the two hundred (200) hour simple moving average near 0.7065 could be in the cards. The November low price point lines up at 0.7075 with the next resistance layer lining up at 0.7095. The next upside level lines up at 0.71.
On the downside, the New Zealand dollar has support at the rising trend line around 0.7025. The next support level is at the 61.8 percent Fibonacci level near 0.6995. The October swing high lines up at 0.6985.