US dollar traded higher this past week against most major currencies, but we cannot count out the fact that it might recapture bullish bias any time, and this can be considered as a correction phase only.
Japanese Industrial Production representing outputs of the Japanese factories and mines, and followed as a major indicator of strength in the manufacturing sector released by the Ministry of Economy, Trade and Industry registered a decline of 3.4% in February 2015, compared to the last time increase of 3.7%.
In terms of the yearly change, the Japanese Industrial production managed to post a reading of -2.6% in February 2015, compared to same month a year ago and the last reading was of 3.7%.
Today, in the Euro zone the Consumer Confidence i.e. a leading index that measures the level of consumer confidence in economic activity will be released by the European Commission, and the expectation is of a rise this time in March 2015 with last reading at -6.7.
In the US, the Personal Income will be released by the Bureau of Economic Analysis, Department of Commerce, which is expected, to post a gain of 0.3% in February 2015.
NZDUSD climbed higher, but it was seen struggling around the 0.7700 levels.
The New Zealand dollar managed to gain strength and traded higher against the US dollar. The most important point is that there is a bearish trend line on the daily chart of the NZDUSD pair, which stalled the upside in the pair. Moreover, the 100-day simple moving average was also broken, but sellers failed to close the pair above the stated MA. We need to see whether the pair can manage to trade higher or not. A break above the 0.7700 handle could take it towards 0.7760.
Intraday Support Level – 0.7500
Intraday Resistance Level – 0.7640
Overall, as long as the pair is above the highlighted trend line it might continue trading higher.
A break above the same could ignite more gains moving ahead.
If the NZDUSD pair moves lower from the current levels, then initial support is around the 0.7500 level, followed by 0.7460. Any further losses might be limited moving ahead.
The US dollar continued to find buyers on the downside against the Canadian dollar every time it moves lower. There is a bullish trend line formed on the daily chart of the USDCAD pair, which we followed this past week also. The same trend line acted as a support recently and pushed the pair back up. The only worrying sign is the fact that the daily RSI moved below the 50 level, which might encourage sellers moving ahead.
Intraday Support Level – 1.2550
Intraday Resistance Level – 1.2650
Buying dips around the trend line lines look like a good option.
A break below the same might call for more losses moving ahead.
On the downside, initial support is around the 1.2550 levels, followed by the highlighted trend line. A break below the same might be a change of trend move.
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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.
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