Forex Trading: NZDUSD Technical Analysis – January 31, 2020

The New Zealand Dollar (NZD) further fell off against the US Dollar (USD) on the last day of the trading week. It’s the persistent drop noticed that fell its price day after day, and today it’s down to 0.6500. As far as the technical bias is concerned it remains bearish because of the lower low wave in the last downside movement printed in the graph below.

NZDUSD: Technical Analysis

The graph below NZDUSD priced itself at 0.6460. There is the support of the Fibonacci level at 0.6414, ahead of the psychological number at 0.6400 and then the major horizontal support 0.6202, these levels will definitely push the price above the stated level.

NZDUSD

Nevertheless, we have observed the numbers of the levels of resistance that make it difficult for the price to rise above that level The first trendline at 0.6492 is just above the price shortly afterward there is a confluence between the trendline and the level of Fibonacci at 0.6545, and then the main horizontal level at 0.6642.

New Zealand’s Consumer Price Index

From the fundamental point of view, Statistics New Zealand’s Consumer Price Index plunged by 02 points compared to 0.7% the month before. The CPI is a key indicator of inflation estimation and shifts in patterns of transactions. A high NZD reading is seen as positive (or bullish) while a low reading is viewed as negative.

Trade Idea

Trading at this level entails threats of its own, as the graph above shows a very bad image right now.

 

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