Key Highlights
· The New Zealand dollar managed to climb higher recently against the US dollar, but faced sellers near 0.7040.
· There is an expanding triangle pattern formed on the 4-hours chart of NZD/USD with resistance near 0.7040.
· Today in China, the Consumer Price Index released by the National Bureau of Statistics of China posted a rise of 0.2% in Dec 2016, compared with the forecast of +0.3%.
· In terms of the yearly change, the Chinese CPI came in at +2.1%, compared with the forecast of +2.3%.
NZD/USD Technical Analysis
The New Zealand dollar recently started an upside move from the 0.6884 low against the US dollar. The NZD/USD pair is currently trading positive, but facing a major resistance near 0.7040.
The main reason for the 0.7040 acting as a major hurdle is the fact that the 200 simple moving average on the 4-hour chart is positioned near the stated level. Moreover, there is an expanding triangle pattern formed on the 4-hours chart of NZD/USD. Its resistance is also around the same area.
There were 2-3 failure already to break the 0.7040 resistance. The pair recently declined as a result, but found support near the 100 simple moving average (H4). Once there is a break above the 200 simple moving average or 0.7040, there can be more upsides in the near term.