The greenback gained strength over the New Zealand dollar during last weeks trading session after reports showed that the economy’s Gross Domestic Product fell to 0.3% from a forecast of 0.4% by economist. Elsewhere, Fed Chair Yellen also gave the U.S dollar strength after she testified.
Weekly bias remains on the downside as 21 EMA crosses 55 EMA to the downside on the 4 hours charts. Oscillators such as RSI, MACD and SSRC are also signaling bearish continuation. More decline to 0.85292 is expected if we get a clear break of 0.86514 supports. The pair seems to have topped out at 0.88382 and as long as this resistance holds, we should be favoring only short positions. However a break of 0.88382 resistance should resume the bullish trend as economist are forecasting a hike in the central banks interest rate from 3.25% to 3.50%.
Key economic indicators to watch out closely for in the coming week is the US Core Cpi, Core Durable Good Orders, New Home Sales, Existing Home Sales, New Zealand Interest Rate Statement, ANZ Business Confidence.