NZD/USD Forex Technical Analysis – Choppy Trade Expected, but Remains Weak Under .7009; Strengthens Over .7027

The New Zealand Dollar is being pressured early Thursday by a stronger U.S. Dollar. Increasing bets that Friday’s U.S. Non-Farm Payrolls report will exceed the current 700,000 estimate is helping to underpin the greenback. A hefty increase in U.S. jobs could move the Federal Reserve closer to ending its massive stimulus.

At 09:23 GMT, the NZD/USD is trading .6985, down 0.0004 or -0.05%.

In economic news, the number of new dwelling consents approved in New Zealand fell a seasonally adjusted 2.8 percent in May compared with a 5.1 percent rise in the previous month, data from Statistics New Zealand showed on Thursday. Excluding apartments, flats, and retirement village units, the number of consents for new houses was up 0.4 percent. Building consents were 17.3 percent higher than the same month a year ago.

In the U.S. on Thursday, traders will get the opportunity to react to the latest Challenger Job Cuts report, Weekly Unemployment Claims and ISM Manufacturing PMI. The latter could be a market moving event.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6923 will reaffirm the downtrend. A move through .7095 will change the main trend to up.

The main range is .6589 to .7465. The NZD/USD is currently trading inside its retracement zone at .7027 to .6924. This zone is controlling the longer-term direction of the Forex pair.

The minor range is .6923 to .7095. Currently, the Forex pair is trading on the weak side of its 50% level at .7009.

Another minor range comes in at .7243 to .6923. Its 50% level at .7083 is resistance. This was successfully tested on June 25.

The short-term range is .7316 to .6923. Its retracement zone at .7120 to .7166 is another potential resistance area.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD on Thursday is likely to be determined by trader reaction to the minor pivot at .7009.

Bearish Scenario

A sustained move under .7009 will indicate the presence of sellers. Taking out yesterday’s low at .6965 will indicate the selling pressure is getting stronger. This could lead to a test of a support cluster at .6924 to .6923.

Bullish Scenario

A sustained move over .7009 will signal the presence of buyers. This could lead to a test of .7027. Overcoming this level will indicate the buying is getting stronger with potential upside targets coming in at .7083 and .7095.