Forex: NZD/USD confirms break of rising trendline; 0.83 becomes resistance

The New Zealand Dollar is trading weaker in the early going of the Asian session, after the trade balance figures in New Zealand came below market expectations. New Zealand Q4 trade balance stood at -$1.3bn vs expected -$0.93bn, on a monthly basis, the read-out came at $-305M in Jan vs +$100M expected. Imports rose a but more than anticipated, while exports failed short of expectations, mainly on Milk powder, butter, and cheese decreases.

The NZD/USD had confirmed the break below an ascending trendline coming all the way back since July 2012. According to Fan Yang, chief technical analyst at FXTimes, "if the trendline is broken, the RSI falls below 40, and 0.83 then becomes resistance, we have a bearish signal." Immediate support is found at 0.8225/30, Aug 6 2012 high, ahead of 0.82. A potential retest of 0.83 will have to face a contention area between 0.8260 - 0.8270, intraday levels.