Forex Market: NZD/USD forecast for Monday

During Friday’s trading session NZD/USD traded within the range of 0.8531-0.8574 and closed at 0.8553, losing 0.15% for the day and 0.94% for the week.

Fundamental view

New Zealand

The surplus on New Zealands trade balance probably decreased to 0.634 billion NZD in April, according to the median forecast by experts, from a surplus figure of 0.920 billion NZD in March. The trade balance, as an indicator, measures the difference in value between country’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form country’s Gross Domestic Product. Export demand has a direct link to demand for the national currency and also causes an impact on levels of production. In case the trade balance surplus decreased more than expected, this would have a bearish effect on New Zealand dollar. Statistics New Zealand is to release the official numbers at 22:45 GMT on May 25th.

United States

Monday (March 26th) is the Memorial Day federal holiday, wherein the men and women, who lost their lives while serving in the United States Armed Forces are remembered. The holiday, celebrated every year on the final Monday of May, was previously known as Decoration Day and originated after the American Civil War in order to commemorate the Union and Confederate soldiers killed in the Civil War. Banks in the country are to remain closed.

Technical view

According to Binary Tribune’s daily analysis, in case NZD/USD manages to breach the first resistance level at 0.8575, it will probably continue up to test 0.8596. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8617.

If NZD/USD manages to breach the first key support at 0.8530, it will probably continue to slide and test 0.8510. With this second key support broken, the movement to the downside will probably continue to 0.8488.