The New Zealand Dollar (NZD) rallied against the US Dollar (USD) on Friday, increasing the price of NZDUSD to more than 0.7300 following the release of non-farm payrolls data. The technical bias has turned bullish because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.7266. A hurdle may be noted around 0.7300-0.7306, the confluence of a psychological number as well as the swing high of the latest major upside rally ahead of 0.7700, another confluence of a psychological number as well as the major horizontal resistance area.
On the downside, the pair is likely to find a support around 0.7055, the horizontal support area ahead of 0.6886, another major horizontal resistance turned support and then 0.6675, the swing low of the latest major downside move as demonstrated in the above chart.
Non-farm Payrolls
U.S. job growth surged in June as manufacturers and other employers boosted hiring, confirming that the economy has regained speed after the first-quarter lull, but tepid wages suggested the Federal Reserve will probably not raise the interest rates soon. Non-farm payrolls increased by 287,000 jobs last month, the largest gain since last October, the Labor Department said on Friday. May payrolls were revised sharply down to show them rising 11,000 rather than the previously reported 38,000.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around the current levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.
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