NZDUSD Faces Tough Resistance As Key Horizontal Level Weighs
FXOpen
Technical Bias: Bullish
Key Takeaways:
- NZDUSD faces tough resistance near key horizontal level
- Technical bias remains bullish
- US durable goods data is due today
The New Zealand Dollar (NZD) extended upside movement against the US Dollar on Wednesday, increasing the price of NZDUSD to more than 0.7660 following the worse than expected news releases about the Kiwi economy. The technical sentiment remains bullish due to a Higher High and Higher Low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 0.7637. A support can be seen near 0.7608-0.7617, the horizontal support area ahead of 0.7600, the psychological number and then 0.7534, the low of February 24 as demonstrated in the following chart.
On the upside, the pair is expected to face a hurdle near 0.7700, the psychological number ahead of 0.7889, the swing high of the last major upside move. The technical bias will remain bullish as long as the 0.7185 support area is intact.
New Zealand Trade Balance
The trade balance in New Zealand remained $50 million in February as compared to $33 million in the month before, missing the average forecast of $392 million. Generally speaking, higher NZ trade surplus is considered positive for the Kiwi economy and vice versa so the worse than expected actual outcome spurred selling pressure in the price of NZDUSD. Not to mention, US rate hike optimism is already keeping the US Dollar under consistent bullish momentum.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing above the 0.7700 handle as described above.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
DAX 40: consolidation amid technology sell-off
A wave of selling in the technology sector that emerged earlier this week has weighed on European equities. The trigger was investor concern over the profitability of large-scale debt-funded investments by major US tech companies in AI infrastructure. The Nasdaq
Euro Hits Fresh Yearly Lows Amid Dovish ECB Signals
The euro remains under pressure following weak macroeconomic data from the euro area and fresh signals that the European Central Bank is prepared to maintain a more accommodative monetary policy stance. Data released yesterday pointed to a deterioration in business
Pound at Key Levels: Markets Assess Impact of Political Uncertainty in the UK
The British pound remains under pressure following increased political uncertainty in the United Kingdom triggered by the Prime Minister’s resignation. Investors are assessing potential shifts in the political and economic policy outlook after the head of government stepped down,