Key Highlights
· New Zealand dollar remained elevated against the US dollar, and traded above 0.6750 area
· There is a bullish trend line formed on the hourly chart of the NZD/USD pair, which is acting as a support area in the short-term
· Today, the New Zealand Manufacturing Sales, released by Statistics New Zealand came in at 1.3% in the fourth quarter of 2015
· In Japan, the Gross Domestic Product released by the Cabinet Office posted a rate of -0.3% in the fourth quarter of 2015, compared with the last reading of -0.4%
NZD/USD Technical Analysis
The New Zealand dollar traded higher towards the 0.6810 level against the US dollar until it found sellers for a short-term correction. There is a bullish trend line formed on the hourly chart of the NZD/USD pair, which is providing support to the pair and preventing losses.
We need to keep a close eye on the highlighted trend line and support area, because a break below it may call for a short-term trend change in the NZD/USD pair.
On the upside, the 0.6800 level remains a major hurdle for the bulls. Only a break above the stated level could push the pair towards the 0.6840 level. The hourly RSI is just around the 50 level, which may be a concern for the bulls.