Forex Trading: NZDUSD Technical Analysis – January 10, 2020
The New Zealand Dollar (NZD) slips down against the US D0llar (USD) on Friday. The price is continuously decreasing for the last three days. This decrease resulted due to a release of unfavorable macroeconomic news. The technical bias might also remain bearish due to the higher low printed on the graph during the last upside move.
NZDUSD: Technical Analysis
As of now, the NZDUSD is being exchanged for the price near 0.6612. There may multiple support levels are seen ahead which might provide some support to the price such as 0.6544, the 38.2% Fibonacci level ahead of 0.6478, the major horizontal support and then 0.6442, the trend line support might prevent the price from decreasing below the said levels.
Talking about the resistance levels, the price may hit resistance near 0.6624, the immediate 23.6% Fib level resistance that might not allow the price to pass through it. However, if the price is able to break through this level it may than observed a resistance around 0.6700, the psychological number before it hits 0.6755, the confluence of a horizontal and trend line resistance which is likely to act as a strong resistance level resisting the price to stick around current level as shown in the graph above.
New Zealand GDP Economic Release
From a fundamental point of view, The Statistics New Zealand release date concerning the GDP of the country which comprises an estimate of the total value of services and goods produced in New Zealand. It is to be noted that the GDP of any country is considered as a broad measure of economic activity of that country so does for New Zealand. Generally speaking, a high reading suggests a bullish market for the NZD, while a falling trend anticipates a bearish market ahead for the NZD.
Since the price seems to be decreasing for the past three days, also the technical bias might remain bearish as well, therefore, opening up short positions at least are not suggested.