The New Zealand Dollar (NZD) inched lower against the US Dollar this Wednesday, with a price figure of less than 0.6500. The decrease in price occurs amid a major economic release. Talking about the technical bias it might remain bearish since the lower low move was printed on the graph recently.
NZD/USD: Technical Analysis
In New Zealand, the start of the day wasn’t good, the pair is being traded around 0.6422 with a lot of resistance levels coming ahead. The price is likely to meet the firs resistance level around 0.6496, the key horizontal level ahead of 0.6565, the Fib level, both of these levels may resist the price from increasing above the said number. Then comes another resistance level around 0.6787, the high of July 22, 2019, as shown in the graph below.
Moving towards the downside, a support level may be seen around 0.6341, the 23.6% Fib level support and then 0.6308, the trend line support which may come across the price one after the other preventing the price from decreasing below these levels. The price may then be subjected to another support level 0.6203, the low of October 01, 2019 as shown in the graph above.
Reserve Bank of New Zealand Rate
New Zealand’s Reserve Bank has published an RBNZ interest rate with a figure of 1 percent that remains the same as the figure of the previous month as it is hawkish about the economy’s inflationary outlook and interest rate rises for the NZD are optimistic or bullish.
Trading the NZDUSD around current levels for a short term position may work well, however opening up long positions should be avoided.