NZD/USD has recently rejected off the 0.7260 price area with a daily candle which is expected to push the price much lower in the coming days. Recently NZD has been quite positive with the economic reports which helped the currency to gain impulsive momentum against USD in a strong bearish trend since 0.7450 area. Today NZD Building Consents report was published with an increase to 0.2% from the previous negative value of -9.5%, which was indeed a positive push for the NZD but the gains were not sustained for a long time. On the other hand, USD has been struggling to get an impulsive pace recently due to mixed economic reports but currently dominating NZD. Today USD Revised UoM Consumer Sentiment report is going to be published which is expected to decrease to 99.4 from the previous figure of 99.9 and Revised UoM Inflation Expectation is also expected to increase in value from the previous value of 2.7%. As of the current scenario, NZD losing grounds against USD at the moment of severe weakness of the currency against other currencies in the market does explain that NZD is comparatively weaker than USD which may lead to further bearish pressure in the pair in the coming days as US Rate Hike is expected to take place this month. To sum up, USD is expected to dominate NZD in the coming days.
Now let us look at the technical view. The price is currently residing below 0.7260 price area with the confluence of dynamic level of 20 EMA as resistance. The price action structure has already formed a Double Top pattern earlier at 0.7450 price area and currently the neckline is being retested by the current daily candle. As the price remains below 0.7260 with a daily close today, further bearish pressure is expected in the market with target towards 0.7150 price area.
