Forex Market: NZD/USD daily forecast

During yesterday’s trading session NZD/USD traded within the range of 0.8452-0.8508 and closed at 0.8487.

At 7:30 GMT today NZD/USD was adding 0.02% for the day to trade at 0.8488. The pair touched a daily high at 0.8517 at 5:40 GMT, breaching the first key resistance.

Fundamental view

Personal income in the US probably rose 0.3% in April, according to the median analysts’ estimate. At the same time, personal spending probably increased 0.2% last month.

The official report is due out at 12:30 GMT. In case, both indicators register a larger-than-expected gain, this would boost greenback’s demand.

The monthly survey by Thomson Reuters and the University of Michigan may show that the final reading of the US consumer confidence improved to 82.5 this month from a preliminary reading of 81.8, estimated on May 16. The survey encompasses about 500 respondents throughout the country. The index is comprised by two major components, a gauge of current conditions and a gauge of expectations. The current conditions index is based on the answers to two standard questions, while the index of expectations is based on three standard questions. All five questions have an equal weight in determining the value of the overall index.

In case the gauge of consumer sentiment showed a larger improvement than projected, this would boost demand for the dollar. The official reading is due out at 13:55 GMT.

In addition, the monthly business activity survey for the area of Chicago may show that the corresponding PMI slowed down to a reading of 60.8 in May from 63.0 in the previous month. Higher than anticipated readings would provide support to the US dollar.

Technical view

According to Binary Tribune’s daily analysis, in case NZD/USD manages to breach the first resistance level at 0.8513, it will probably continue up to test 0.8538. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8569.

If NZD/USD manages to breach the first key support at 0.8457, it will probably continue to slide and test 0.8426. With this second key support broken, the movement to the downside will probably continue to 0.8401.