The New Zealand dollar lost ground for a second week in a row, falling to long term uptrend support. In the first week of the holidays, can it stabilize? Here is an analysis of fundamentals and an updated technical analysis for NZD/USD.
The announcement about QE tapering in the US gave a boost to the US dollar, and no currency was spared. The big decision overshadowed positive data from New Zealand: the economy grew by 1.4% in Q3, beating predictions of 1.1%. The trade balance figure, which was released ahead of time,
showed a surplus. It is the first such surplus for the month of November in 22 years. Trade with China now tops trade with Australia. Credit card spending also showed strong consumer sentiment, with a rise of 6.9%. Can the strong New Zealand economy be reflected in a stronger NZD/USD and just in a drop of AUD/NZD?
TECHNICAL BEAM
After falling off a technical resistance at 0.8309; NZD/USD continued shedding price value for two consecutive weeks and is subsequently expected to shed more come 2014. Market price is currently at 0.8146 and this week prediction concludes a bearish price target of 0.7938 which is exactly 100% of the Fibonacci sequence.
NOTE: Price
predictions produced by FibonacciPrice&PatternTrader may be
affected by unforeseen events like hurricane, earth quake, flood and
other natural disasters consequently changing price patterns already
predicted. Hence we advice strict adherence to money management
techniques.
HAPPY TRADING
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