Forex Trading: NZDUSD Technical Analysis – October 17, 2019
The New Zealand Dollar (NZD) fell on Thursday against the US Dollar (USD), reducing NZDUSD’s price to below 0.6300. The pair’s price has fallen after the publication of major economic news. Considering the pair’s price movement over the last few days, it is expected that the technical bias may remain bearish because the pair’s price has been higher low in the recent upside movement
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.6287, support which prevents the price from further backing can be witnessed around 0.6261, the 23.6% Fib level. Another support may come around 0.6314, the trendline support and then 0.6203, the key horizontal support level as demonstrated in the given chart.
Coming towards the upside, At the 23.6% Fib level resistance may be seen around 0.6342, a while later a trendline resistance of 0.6430 comes, and then at 0.6469, major horizontal resistance is observed as demonstrated in the given above chart. The technical bias may remain bearish as long as 0.6298, the major horizontal resistance remains flawless.
NZD Consumer Price index
In New Zealand, the figure for the CPI in this 3rd quarter is 0.7 percent compared to 0.6 in the previous quarter, up from 0.6 percent of the economist’s estimate. The information was copied from the Statistics New Zealand news release.
The Statistics New Zealand Consumer Price Index is a calculation of price movements by measuring the retail prices of a typical shopping basket of goods and services. NZD’s buying power is dragged down by inflation. The CPI is a key indicator for calculating inflation and shifts in patterns in buying. A high reading for the NZD is considered positive (or bullish) and vice-versa.
Considering the pair’s overall price activity over the past couple of days, short to medium term selling the NZDUSD around current levels can be a good decision.