Forex Trading: NZDUSD Technical Analysis – Febuary 05, 2020
The NewZealand Dollar finally pushes its price against the US Dollar (USD) today. Although the NZD has inched higher, this is the very poor period through which it has struggled for more than a month, and hence the NZD’s currency continuously weakens and took its price to under 0.6500, one of the main reasons for this is the favorable circumstances of the US. And hence, the technical bias might remains bearish due to the higher low wave printed on the graph in the last upside move.
NZD/USD: Technical Analysis
At times, the NZDUSD placed itself at the price of 0.6482. We found that the price at this stage is supported by the trendline at 0.6474 which is just below the price and it is expected that it would aid it in its forward progress, at 61.8 percent Fib level it could get another support of 0.6413, and then 0.6202, the main horizontal support stands at the bottom of the graph so less anticipation is related to this support.
Lamentably, the price at present, on the other hand, is pressurized by the number of the level of resistance which places a limit on its growth, as we have seen the parallel trendlines of 0.6544 and 0.6562, simultaneously, passing right above the price, and soon after that, the major horizontal resistance stands at 0.6622.
USD Michigan Consumer Sentiment Index
The Michigan Consumer Sentiment Index released by Michigan University, which today enhanced its index by 07 points as compared to the last month, as well as the expectation of the economist. That shows a picture of whether or not consumers are willing to spend money. High reading foretells hope (or bullishness) for USD.
Trading at this stage entails risks of its own, as the graph above shows an extremely awful image right now. So avoiding trading at this stage could be the best solution for both short- and long-term traders, as the technical bias continues to bearish for some time.