NZD/USD has been quite volatile and corrective inside the range between the resistance area of 0.7370-0.7460 and support area of 0.6940-0.7050. Both countries have published upbeat economic reports this week which led to corrective structure in the market. The corrective structure is currently quite non-directional but bears are expected to get better momentum in light of recent positive high impact economic reports published on USD side. Today, Business NZ Manufacturing Index report was published with an increase to 57.9 from the previous figure of 55.5. The positive economic report did help the currency to gain some bullish momentum against USD which can be wiped out by the end of the day as high impact economic reports from the US are yet to be published. Today, US Core Retail Sales report is going to be published which is expected to be unchanged at 0.5%, Retail Sales report is expected to show a decrease to 0.1% from the previous value of 0.6%, Empire State Manufacturing Index is expected to decrease to 18.2 from the previous figure of 25.2, Capacity Utilization Rate is expected to have a slight increase to 76.8% from the previous value of 76.7%, Industrial Production report is expected to decrease to 0.1% from the previous value of 0.2%, and Prelim UoM Consumer Sentiment is expected to decrease to 95.1 from the previous figure of 96.8. The forecasts for the US economic reports today are quite mixed in nature that is expected to create a good amount of volatility in the market where any positive report publishing today will lead to USD gain against NZD in the coming days.
Now let us look at the technical chart. The price is currently being held by the dynamic level of 20 EMA inside the range between the resistance area of 0.7370-0.7460 and support area of 0.6940-0.7050. The price has been quite volatile and corrective in nature whereas the bullish rejections are quite larger than the bearish rejections along the way which signals that the bears are currently in a better position than bulls along the process. As the price remains below the dynamic level of 20 EMA, the bearish bias is expected to continue taking the price towards the support area of 0.6940-0.7050.
