New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
No major action was noticed in the NZDUSD pair earlier during the Asian session, as the New Zealand market was closed due to the ANZAC Day Observance holiday.
USDCAD suffered heavy losses this past week as the US dollar weakened and traded lower.
Euro can continue trading higher in the short term against the US dollar, and today the focus will be on the German Import price index helps in determining the change in prices for goods imported by Germany, which will be released by Deutsche Bundesbank and expectation is of a 0.5% rise.
US dollar buyers will be concentrating on the US Services Purchasing Managers Index (PMI) capturing business conditions in the services sector, which will be released by Markit Economics.
The New Zealand dollar gained this past week to trade close to the 0.7740 level against the US dollar where it found sellers. The NZDUSD pair corrected lower later and tested the 0.7550 support area where there were a few important simple moving averages – 100 and 200 on the 4 hour chart. The pair managed to hold the ground, but in the process broke an important bullish trend line. There is a chance that the pair might trade back higher in the near term, but could face resistance around the 50% fib retracement level of the last leg from the 0.7737 high to 0.7537 low. Moreover, the broken trend line might also come into play and act as a barrier for the pair moving ahead.
Intraday Support Level – 0.7540
Intraday Resistance Level – 0.7635
Overall, as long as the pair is above the 200 SMA it might continue moving higher.
A break below the same could ignite more losses in the short term.
On the downside, the 200 SMA around the 0.7500 level holds the key in the near term and push the pair back higher.
The US dollar fell lower against the Canadian dollar and was about to break the 1.2080-50 support area. The mentioned support area holds the key for the pair in the near term and if it manages to break the same more losses are likely. There is a bearish trend line on the 4-hour chart of the USDCAD pair, which is a major barrier for more upsides. On the upside, the 38.2% fib retracement level of the last drop from the 1.2643 high to 1.2083 low, which is around the trend line and is one of the most important hurdles.
Intraday Support Level – 1.2080
Intraday Resistance Level – 1.2220
Selling rallies around the bearish trend line looks like a good option.
A break above the same might call for more gains.
If the USDCAD pair moves lower from the current levels, then the last low of 1.2080 might holds the downside.
"Patience is the key for success"
Oliver Miller is one of the best financial analyst with 18 years of online trading experience
US dollar traded sharply lower recently against a basket of currencies as the recent economic releases in the US missed the mark and ignited a correction phase in the US dollar in the short term.
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