Forex Trading: NZDUSD Technical Analysis – October 21, 2019

The New Zealand Dollar (NZD) favored the US Dollar (USD) on Monday,  increasing the price of NZDUSD to more than 0.6400. The price of the pair increased after major financial information released. The technical bias is foreseen as bearish in light of the fact that the pair’s price denoted a higher low in the recent upside move.

NZD/USD Technical Analysis

As of this writing, the pair is being traded around 0.6395, the immediate resistance, at the 38.2% Fib level  that might also cause an obstacle in the path of shifting it further from this level may be seen around 0.6424, ahead of 0.6565 the 61.8% Fib level resistance, and then 0.6790, the major horizontal resistance level as demonstrated in the given below chart.

NZDUSD

Talking to the downside, Immediate trendline support that prevents it from falling can be seen around 0.6348. Another support, at 23.6% Fib level may come around 0.6341 and after that at 0.6250, the significant horizontal support appears in the given above chart. The technical bias may remain bearish as long as 0.6424, the major horizontal resistance stays intact.

NZD Consumer Price Index

In New Zealand, the figure with respect to the consumer price index remained 0.7%  in this quarter as compared to the last quarter which was 0.6%, up beating the economist expectation which was 0.6. The data is copied from the news released by Statistics NewZealand.

Consumer Price Index is a proportion of price behavior by the examination between the retail costs of an agent shopping crate of products and ventures. The buy intensity of NZD is hauled somewhere around expansion. The CPI is a key indicator to quantify expansion and changes in buying patterns. A high perusing is viewed as positive (or bullish) for the NZD, while a low perusing is viewed as negative.

Trade Idea

Considering the price movement over the last couple of days,  selling the NZDUSD around current levels can be a decent choice in the short to medium term.

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