The New Zealand Dollar (NZD) plunged down against the US Dollar on Wednesday. It’s the third time this week that the pair kept on decreasing. The technical bias, however, might remain bullish since the price printed a higher low during the last upside move as shown on the graph below.
NZDUSD: Technical Analysis
The NZDUSD is being quoted around 0.6526. The pair is likely to face resistance while moving upside near 0.6566, the confluence of a trend line and horizontal level resistance ahead of 0.6700, the psychological number and then the high of July 22, 2019, may stick the price near 0.6787 as shown in the graph below.
Coming towards the downside, a support level may be seen around 0.6496, the major horizontal support level ahead of 0.6413, the trend line support and then 0.6341, generally known as the 23.6% Fib level may act as strong support level helping the price to sustain around the current level as shown in the graph. The technical bias is likely to stay bullish as long as 0.6496, the key horizontal support level is intact.
NZD Global Dairy Product
The pair faces the decline due to the news released by the GDT Price Index of Global Dairy Trade, which dropped dramatically from 1.7 percent to -0.5 percent, using a weighted-average percentage price change, GDT Price Indices are being used to avoid the distortion of a simple weighted average price and to provide a more accurate reflection of price movements between trade events.
Trading the pair around current levels for both short and long term positions should be avoided for some time.