NZDUSD: Technical Pressure Mounts Amid Weak Trade Data

NZDUSD – technical overview

Overall pressure remains on the downside with the market continuing to stall out on runs up into the 0.6500 area. At the same time, there are some signs of the market wanting to put in a longer-term base. Ultimately, a break back above 0.6500 would be required to take the medium-term pressure off the downside and encourage this prospect. A monthly close below 0.5800 will intensify bearish price action.

R2 0.6154 – 8 July high – Strong
R1 0.6098 – 17 July high – Medium
S1 0.5942 – 3 May low – Medium
S2 0.5900 – Figure – Strong

NZDUSD – fundamental overview

On the surface, New Zealand trade data produced a solid headline reading. However, at closer glance, the underlying components were distressing, with both imports and exports declining outright. This along with an ongoing slide in commodities prices proved to be a big weight on the New Zealand Dollar. Key standouts on Tuesday’s calendar come from Eurozone consumer confidence, US existing home sales, and Richmond Fed manufacturing.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger