NZD is having some strength issues against continuing bullish volatile trend against USD. Yesterday, NZD has pushed upwards from 0.7150 to 0.7230 with a non-volatile intraday move and still it is struggling to break the 0.7230-50 resistance area. Today, USD is having some major events like Building permits which is forecasted 1.23M than previous 1.21M; Philly FED Manufacturing Index which is forecasted a decrease to 18.5 from 23.6; and Unemployment Claims report which is expected to increase from 234K to 243K. On the other hand, NZD has major event of Retail Sales report tomorrow morning which is expected to rise to 1.1% from 0.9% and Core Retail Sales expected to be 0.9% which previously was 0.3%. Overall, there will be a good amount of volatility in this pair as both currencies will be having high-impact events within next 12 hours. In contrast to context, USD is expected to show some strength over NZD in fundamental and technical aspects.
Now let us look at the technical view, the price has rejected from 0.7250 since the morning and the price action has already shown some evidence of bearish pressure in this pair. Currently, the price is below 0.7230 level and expected to progress much lower if the price's daily close remains below the 0.7230-50 level. As of the high-impact events today, a good amount of volatility is expected to hit the pair and if the price remains bearish, it is expected that the price will move to a much lower ground towards 0.6950. On the other hand, if the price closes above 0.7250 in daily chart, we will be expecting a higher move towards 0.7500-50 area in the coming trading days. So, the daily close of today's candle is very crucial for this pair to predict the upcoming moves of this instrument.
