The New Zealand Dollar (NZD) extended downside movement against the US Dollar (USD) on Wednesday, dragging the NZDUSD to less than 0.6700 after the release of Kiwi unemployment news. The technical bias remains bearish because of a Lower Low and Lower High in the recent wave.
Technical Analysis
As of this writing, the pair is being traded around 0.6658. A support may be noted near 0.6618, the swing low of the recent downside move ahead of 0.6600, the psychological number and then 0.6446, the 161.8% fib level as demonstrated in the following chart.
On the upside, the pair is expected to face a hurdle near 0.6684, the 76.4% fib level ahead of 0.6700, the psychological level and then 0.6778, the swing high of yesterday. The technical bias will remain bearish as long as the 0.6814 resistance area is intact.
New Zealand Unemployment
New Zealand’s jobless rate rose in the third quarter to 6 percent as employment unexpectedly fell. The unemployment rate rose from 5.9 percent in the second quarter to a level that both the central bank and the market had expected. But employment unexpectedly fell for the first time in three years in the third quarter, driven by a decline in part-time workers, and the participation rate declined further from a record high. Employment fell 0.4 percent in the three months ended September 30, for an annual gain of 1.5 percent, Statistics New Zealand said. The participation rate fell to 68.6 percent from 69.3 percent.
Trade Idea
Considering the oversold outlook of the pair, buying can be a good strategy if we get a valid bullish reversal candle on four-hour chart today.
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