NZDUSD has broken above the corrective structure resistance 0.6950 with a good amount of bullish pressure. Yesterday, we saw a bullish rejection on the daily candle which signals the presence of bears currently in the pair. Today, a Trade Balance report was published in New Zealand which showed a surplus of 578M, higher than forecast for a 268M surplus. This was bullish for NZD this morning but USD is quite stronger now, so NZD could not keep the bullish pressure for long. On the USD side today, Existing Home Sales report is due later today. The report is expected to show a decline to 5.65M from 5.71M earlier. Besides, Crude Oil Inventories report is also expected to reveal a bigger deficit of -2.4M barrels from -1.8M in the previous week. To sum up, New Zealand's trade data could not push NZD higher. However, if if upcoming US news comes positive today, we might see further bearish pressure in this pair today.
Now let us look at the technical chart. Recently, the price has broken above the resistance of 0.6950 with a daily close. Currently the price is showing some bearish pressure after the bullish rejection yesterday. The price is expected to move down to 0.6950 before showing further bullish pressure in this pair with a target towards 0.7050 resistance level. Our bullish bias in this pair will only change if the price breaks below 0.6950 with a daily close.
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