NZD/USD has been in a bullish non-volatile trend since the break above 0.7050 resistance level. Currently the price is showing some volatility in the market on the back of recent economic reports from the US and New Zealand. New Zealand published the GDP report at 0.5% which was better than previous value of 0.4% but worse than expected value of 0.7% which affected the NZD negatively yesterday. Moreover, the Fed rate hike decision provided some positive gains on USD side which currently paused the NZD bullish trend. Today NZ Business Manufacturing Index was published which showed a rise to 58.5 from 56.9 previously and the news helped NZD to make some gains today. The United States will unveil the Building Permits report which is expected to increase to 1.25M from 1.23M previously. The Housing Starts report is also expected to show a rise to 1.23M from 1.17M. As the high impact US reports are to be published, a good amount of volatility is expected to hit the market today where positive USD reports may lead to counter trend move in this pair in the coming days.
Now let us look at the technical view. The price has moved in a non-volatile way since the break above the resistance at 0.7050. There have been very little retracements in the trend so far which has taken the price quite far from the dynamic level of 20 EMA. As of the recent bearish price action, currently the pair is expected to retrace back to 20 EMA. If 20 EMA is breached below, then the price may fall to 0.7050 level to retest it as a support before proceeding further upward. The bias is currently bullish in this pair until the price breaks below 0.7050 with a daily close.
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