Market Forecast 13/10/2017
The NZD/USD pair is back in the bullish zone above 0.7120 and Crude Oil price is set to break the $51.90-52.00 resistance.
NZD/USD Forecast – Back in Bullish Zone
- The New Zealand Dollar after forming a bottom near 0.7050 started an upside move against the US Dollar.
- There was a break above a bearish trend line with resistance at 0.7080 on the hourly chart of the NZD/USD pair.
- Recently in New Zealand, the Business NZ PMI for Sep 2017 was released by the Business NZ.
- The outcome was above the forecast of 57.0, as there was only a minor decline in the PMI to 57.5.
The New Zealand Dollar was under a lot of pressure, but the 0.7050-0.7055 support managed to hold losses against the US Dollar. As a result, the NZDUSD pair formed a bottom above 0.7050 and started an upside move.
It moved above the 23.6% Fib retracement level of the last decline from the 0.7204 high to 0.7056 low. The most important move was a break above a bearish trend line with resistance at 0.7080 on the hourly chart.
The 100 hourly simple moving average was also cleared along with the 50% Fib retracement level of the last decline from the 0.7204 high to 0.7056 low.
It has opened the doors for more gains and the pair now looks set for an upside break above the 0.7180 level followed by 0.7200. On the downside, there is a bullish trend line with support at 0.7140, which is a decent buy zone.
New Zealand Business PMI
Today in New Zealand, the Business NZ PMI for Sep 2017 was released by the Business NZ. The forecast was slated for a decline from the last reading of 57.9 to 57.0.
However, the actual result was above the forecast of 57.0, as there was only a minor decline in the PMI to 57.5. This means the Business PMI in New Zealand continues to display very healthy levels of expansion.
Commenting on the data, the BusinessNZ’s executive director for manufacturing, Catherine Beard, stated, “It was encouraging to see the proportion of positive comments increase further to 69.5%, compared with 65% in August”.
Crude Oil Price To Break $52.00?
- Crude oil price after a tiny correction found support at $50.40 against the US Dollar.
- There was a break above a connecting bearish trend line with resistance at $51.20 on the hourly chart.
Crude oil price is back in the bullish zone after forming a base around the $50.40 level against the US Dollar. The price is once again gaining pace and recently cleared the 51.00 resistance and a connecting bearish trend line with resistance at $51.20 on the hourly chart.
It even managed to surpass the recent high of $51.62, which means the price might now test the 1.236 extension of the last decline from the $51.62 high to $50.41 low.
If buyers remain in action, there is even a chance of a break above the $52.00 handle in the near term.
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