Key Highlights
· The New Zealand dollar declined heavily versus the US Dollar, and closed below 0.7200.
· There was a triangle pattern formed on the 4-hours chart of NZD/USD, which was broken to ignite a move below 0.7200.
· Today, the New Zealand Electronic Card Retail Sales reported by Statistics New Zealand posted a rise of 1.9% in Sep 2016.
· In terms of the yearly change, the New Zealand Electronic Card Retail Sales came in at +6.1%.
NZD/USD Technical Analysis
The New Zealand dollar was under heavy bearish pressure and declined below a major support area of 0.72000 versus the US Dollar. Going forward, we may witness more losses in NZD/USD.
The pair recently broke a triangle pattern formed on the 4-hours chart, which ignited a sharp downside reaction, taking it towards 0.7100. The pair attempted a correction once, but failed to break the 38.2% Fib retracement level of the last drop from the 0.7310 to 0.7110 low.
Looking at the technical indicators, it looks like the pair is in a downtrend, and may continue to decline in the near term.