HomeAnalysis NewsForex Trading: NZDUSD Technical Analysis – May 10, 2019

Forex Trading: NZDUSD Technical Analysis – May 10, 2019

10 May 2019 By Galina Mikova

The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Friday, this led to an increase in the price of NZDUSD making the total appear more than 0.6600. The price of the pair increased after major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.

NZD/USD Technical Analysis

Currently, the pair is being traded around 0.6606, resistance may be seen around 0.6746, the key horizontal resistance level ahead of 0.6792, the 38.2% Fib level resistance and then 0.6935, the trendline resistance as demonstrated in the given below chart.

NZDUSD

 

Coming towards the downside, support can be witnessed around 0.6581, the trendline support. Another support may come around 0.6500, the psychological number and then 0.6423, the major horizontal support level as demonstrated in the given above chart. The technical bias may remain bearish as long as 0.6802, the major horizontal support remains intact.

USD Nonfarm Payrolls News

In the United States, the figure with respect to the nonfarm payrolls remained 196K in March, as compared to 33K during the month before, up beating the economist expectation which was 180K. The data is copied from the news released by the Department of Labor, United States.

The data represents the number of jobs created in all non-agriculture sector in due course of time. It is to be noted that the monthly variation in the Nonfarm payrolls data can be extremely volatile since it is directly proportional to the economic policy decisions made by the Central Bank. Generally speaking a high reading in this regard is considered as a bullish or upward trend for the US Dollar (USD) whereas low reading indicates a downward trend or bearish market for the US Dollar (USD).

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, selling the NZDUSD around current levels can be a good decision in short to medium term.