Forex Trading: NZDUSD Technical Analysis – January 28, 2020
The New Zealand Dollar dropped further at a level below 0.6500 against the U.S. Dollar (USD). Due to bad economic news, the currency of New Zealand is losing its strength. It’s the third trading day the country is still facing the losses and its price is falling day after day. As for the technical bias, it remains bearish because of the lower low wave shown in the last downside move of the graph.
NZDUSD: Technical Analysis
On the graph attached below, the NZDUSD quoted at the price of the 0.6526, on the downside of the price, there are support levels at different points, that help the price to move a forward. A first, there is the confluence of trendline and the major horizontal support level at 0.6487, after this, at 0.6413, there is the Fibonacci level and then at 0.6202, there is another major horizontal support stood, which is little far from the pair’s price.
Sadly, the price has the resistances at different levels, if it goes higher, they definitely hit it and force it backward, on the price, there are two resistances parallel to each other of 0.6539 and 0.6611, just above the price and then, at the relatively short distance above, the main horizontal resistance of 0.6624 comes.
NZD Consumer Price Index
From the Fundamental viewpoint, the Consumer Price Index published by Statistics New Zealand dropped by 02 points comparatively it was 0.7%, the month before. The CPI is a key indicator for calculating inflation and changes in purchasing patterns. A high reading for the NZD is seen as positive (or bullish) while a low reading is considered negative.
For more than a month, the NZDUSD survives on its bad period, so trading at this stage may not succeed as the technical bias remains bearish for a while.