The New Zealand Dollar (NZD) rose against the US Dollar (USD) this morning. The price of the pair goes above 0.6400 after a major economic news release. As far as the technical bias is concerned, it might remain bearish since the higher low during the recent upside move may be seen on the graph below.
NZD/USD: Technical Analysis
At times, the NZDUSD is being traded around 0.6423 and is likely to face resistance around multiple levels coming ahead with the first being the major horizontal resistance level near 0.6436, which may give the price a tough time to strike through, ahead of 0.6444, the trend line resistance and then at 0.6567 a 61.8% Fib level stands.
Speaking about the downside, the price may be supported by about 0.6360, the confluence of main horizontal support and a trend line ahead of 0.6301, another trend line which may also prevent the price from dropping below. The technical bias will remain uneven until 0.6360, the key level of horizontal support remains there.
Business NZ PMI
The Business NZ PMI published by Business NZ presents New Zealand’s business conditions. PMI Business is an important indicator of the overall economic situation. As a result, values above 50 signal value (or are bullish) for the NZD, according to the reported figure, 52.4 is marginally higher than the previous month and the economist’s expectation which was 48.4.
The New Zealand Dollar can be traded around current levels for a short to medium term for sure. The technical bias is expected to remain bullish so opening up long positions may also work well.