NZD/USD – Technical Analysis for Forex Trading & CFDs.
United States – Existing Home Sales
On Monday, at GMT 2:00 p.m., the US National Association of Realtors released the existing home sales number. It is an annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.
The sale of an existing home usually has a wide-spread positive ripple effect in the local economy. So, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, Forex traders consider the existing home sales number to be an important data as it tends to have a considerable market impact.
Last month, the US existing home sales figure came out at 5.54 million. Analysts are expecting the figure to come around 5.55 million this month.
New Zealand – Trade Balance
On Thursday, at GMT 10:45 p.m., the Statistics New Zealand released the national trade balance figure. It measures the difference of the value between net import and net export of the country during the previous month.
The export of a country is directly correlated to the demand for its currency. So, a positive trade balance figure indicates that foreigners had to buy more local (NZD) currency in exchange of their domestic currency. Hence, economists and Forex investors consider the trade balance to be an important indicator of the health of the New Zealand’s economy.
Last month, the trade balance figure of New Zealand came out at $217 million. This month, the forecast is set a much lower figure, at $200 million.
The NZD/USD broke below the sharp uptrend line on January 29. Since then, the pair mostly traded sideways between 0.7150 and 0.7385 levels. Last week, the NZD/USD once again turned bearish and currently just above the support near the 0.7150 level.
The existing home sales in the United States may go up over the last month to 5.55 million. On the other hand, analysts are expecting the trade balance of New Zealand to go down from $217 million to $200 million over the last month. We believe it would set a bearish fundamental outlook for the NZD/USD this week. Therefore, if the NZD/USD closes below the support near 0.7150, it would likely attract additional bearish momentum in the market.
Hence, Australian Forex traders should look out for trading opportunities below this major support level around 0.7150.
The BTC/AUD mostly remained bullish over the last several weeks and formed an uptrend line. However, after reaching near the 11,750 level, it found a strong resistance. Currently, the BTC/AUD is trading just below the resistance near the 11,750 level.
Over the last few weeks, there have been a lot of negative news around cryptocurrency trading. For instance, Latvian lawmakers are considering putting a 20% capital gain tax on bitcoin transactions. Nonetheless, Coinbase said last Friday that they have blocked WikiLeaks Shop. As a result, WikiLeaks Shop will not be able to make any more transactions on the Coinbase exchange.
Such brave example of self-regulation from one of the most prominent cryptocurrency exchanges created an optimistic momentum for bitcoin. Therefore, we believe, if the BTC/AUD breaks above the resistance near 11,750, it will likely attract additional bullish momentum in the market.
Hence, Australian bitcoin traders should look out for trading opportunities above this major resistance level around 11,750.