Forex Trading: NZDUSD Technical Analysis – January 03, 2020

Not a good day for the NewZealand Dollar (NZD) since it plunges down against the US Dollar the price to less than 0.7000. The price decrease occurs amid the release of adverse economic news. As far as the technical bias is concerned, it might remain bullish since the price printed a lower high in the recent downside move.

NZDUSD: Technical Analysis

NZDUSD is now, being traded at the price of 0.6649, with the multiple support levels that will soon take it to the above-said level and on the other side, it also protects it from the further falling, as exhibited on the graph below. The pair price may experience the immediate support of the trend line at the 0.6630, soon after it, there is Fibonacci level support of 0.6620, then the major horizontal may available at 0.6478.

NZDUSD

Speaking of the resistance levels, there are also a few resistance at different intervals that could create an obstacle for NZDUSD, going forward. It may face its first resistance at 0.6741, while it is not far from the price of the pair, ahead of 0.6750, the psychological number and then the greatest horizontal resistance comes at 0.6787, as shown in the above graph.

USD Chicago Purchasing Managers Index

Fundamentally, the Chicago Purchasing Managers Index released by ISM-Chicago, positive news is responsible for the weakening of the NZD currency, as it increased significantly from 46.3 to 48.9, as it also surpassed the expectations of economists.

This index is an indicator of industry trends and is related to the ISM manufacturing index. It is widely used to indicate the US economy as a whole. For the USD, a result above or equal to 50 is bullish, while a result below 50 is considered bearish.

Trade Idea

Although the NZDUSD has been passing with its bad days since the last two days, there is a tendency in the NZD currency to become stronger with time against USD, so short- and long-term traders may not fail.

 

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