The New Zealand dollar rose slightly early Monday after the release of better-than-expected domestic retail sales data, but prices remain in a range for a third session as traders wait for the next catalyst to drive the next major move.
At 0:31 GMT, the NZD / USD is trading at 0.7171, up 0.0007 or + 0.10%.
In business news, New Zealand retail sales volumes rose 2.5% seasonally adjusted in the first quarter, Statistics New Zealand data showed on Monday, increasing sales by 6.8% on the year .
Technical analysis of the daily swing chart
The main trend is up according to the daily swing chart, but momentum has been down since May 10th.
A trade passing through .7135 will change the main downtrend. This is followed by another main bottom at 0.7115. A move to 0.7305 will signal a resumption of the uptrend.
The minor trend is also up. A trade through the minor high at 0.7271 will indicate the buy is strengthening.
The primary range is 0.7465 to 0.6943. Its retracement area at 0.7204 to 0.7266 is resistance. This area controls the short term direction of the Forex pair.
The short-term range is 0.6943 to 0.7305. Its retracement area at 0.7124 to 0.7081 is potential support.
Daily Swing Chart Technical Forecasts
The price action of the last few days suggests that the direction of NZD / USD on Monday will be determined by traders’ reaction to the 50% main level at 0.7204.
A sustained move below 0.7204 will indicate the presence of sellers. If this move creates enough downside momentum, look for the sell to eventually expand into the major low at 0.7135. If that doesn’t hold up, look for movement to continue into .7124 to .7115.
A sustained move above .7204 will signal the presence of buyers. The daily chart indicates that there is a lot of room upward from this level with potential targets the main Fibonacci level at 0.7266, followed by the minor high at 0.7271.
For an overview of all of today’s economic events, check out our economic calendar.