The New Zealand Dollar inched higher against the US Dollar today with a price being quoted above than 0.6400. The increase in the price follows a key economic release. The technical bias also seems to remain bullish since the lower high during the last downside move may be seen on the graph evidently.
NZD/USD: Technical Analysis
Currently, the NZDUSD is being bid for the price around 0.6422. As the price moves upwards, it may face strong resistance around 0.6496, its a major horizontal resistance level which shall enforce the price to stay below the said level. A little further, another resistance level 0.6516, the trend line resistance which may also prevent the price from increasing ahead of 0.6787, the high of July 22, 2019, as shown in the graph below.
Talking about the downside, the price may receive support around 0.6341, the confluence of key horizontal support and a trend line ahead of 0.6304, another trend line which may also prevent the price from falling below. Then the price may come across support around 0.6203, the low of October 01, 2019. The technical bias might remain bullish until 0.6341, the key horizontal support level remains there.
New Zealand RBNZ Interest Rate Release
Talking through a fundamental standpoint, the rate for the interest released by the reserve bank of New Zealand remained 1% this month, as compared to 1% during the month before, up beating the consensus of the economists which was 0.75%. It is to be noted that If the RBNZ remains hawkish concerning the inflationary outlook of the country’s economy and raises the rate of interest, it is considered positive for the growth of NZD suggesting a bullish market ahead and vice versa.
The New Zealand Dollar can be traded around current levels for a short to medium term for sure. The technical bias is expected to remain bullish so opening up long positions may also work well.