Forex Trading: NZDUSD Technical Analysis – October 31, 2019
The New Zealand Dollar (NZD) on Thursday inched higher against the US Dollar (USD), increasing NZDUSD’s price to more than 0.6400. The pair’s price has risen following the release of major economic news. Despite the pair’s price movement over the past few days, it is assumed that the technical bias will stay bearish as the pair’s price is higher low in the recent upside move
NZD/USD Technical Analysis
As of this writing, the pair is traded around 0.6402, At the 38.2% Fib level resistance may be seen around 0.6426, a while later a trendline resistance of 0.6570 comes, and then at 0.6733, another trendline resistance is observed as demonstrated in the given below chart.
Coming towards the downside, immediate trendline support can be witnessed around 0.6378, which prevents the price from further backing. Another support maybe around 0.6341, the 23.6% Fib level support and then 0.6203, the key horizontal support as shown in the chart above. The technical bias may remain bearish as long as 0.6426, the major horizontal resistance remains unchanged.
NZD Building Permit
In New Zealand, this month’s Building Permit percentage rose to 7.2% from 0.9% in the previous month, up from the economist’s 2.1% forecast. The information was taken from Statistics New Zealand.
The Building Permits s.a. show the number of new construction works. It is perceived to be the housing market’s leading indicator. The greater the number of permits, the more positive (or bullish) for the NZD, while negative or bearish is viewed as a low reading.
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.