It isn’t a nice day for the New Zealand Dollar (NZD), as it plunges down its price against the United States Dollar (USD) to less than 0.6700. And from the graph given, it was also observed that, since the beginning of the month, the pair’s price has continued to suffer from the downturn. Possibly the fall in the price of today is due to negative economic news releases. As far as the technical bias is concerned, it might remain bearish since the price printed a lower low in the recent downside move.
NZDUSD: Technical Analysis
Currently, the pair price of NZDUSD is being traded at 0.6607, Although the decline in the price of today, it is supported with many numbers of support levels that will soon lift the price of the NZDUSD, the foremost support stands at 0.6541, a key horizontal support level, ahead of 0.64526, the trendline support, and then at 0.6412, it gets the 61.8% support of Fib level, as demonstrated in the given graph.
On the upper side, there are resistance levels, that might restrict the pair’s price forward movement, the first resistance is just above the NZDUSD of 0.6633, ahead of the psychological number of 0.6700, and then the major horizontal resistance comes at 0.6753.
NZD Building Permits
The Building Permits s.a. According to Statistics New Zealand, the number of permits for new construction projects dropped from -1,3% to -8,5% this month and this figure also drops below the 2.1% economist estimate.
It’s considered a leading housing market measure. The more numbers of permits are growing, the more positive (or bullish) for the NZD, while a low reading is seen as negative, or bearish.
Even though the NZDUSD has been going through its bad days since the beginning of the month, observing the support levels in the graph above come to know there’s a possibility in the NZD currency to get better over time against USD, so short- and long-term traders might not hesitate about the investment.