The New Zealand Dollar (NZD) extended upside movement against the US Dollar (USD) on Wednesday, increasing the price of NZDUSD to more than 0.6800 ahead of some key economic events. The technical bias already remains bearish due to a Lower Low in the ongoing wave on daily chart.
Technical Analysis
As of this writing, the pair is being traded around 0.6806. A support may be noted near 0.6746, the intraday low of yesterday ahead of 0.6700, the psychological level. A move below the 0.6700 support area could open doors for renewed selling pressure towards the 0.6500 support area.
On the upside, the pair is expected to face a hurdle near 0.6981, the 23.6% fib level ahead of 0.7127, the 38.2% fib level and then 0.7245, the 50% fib level as demonstrated in the above daily chart. The technical bias will however remain bearish as long as the 0.7230 resistance area is intact.
ISM Manufacturing PMI
On Forex Calendar, the Institute of Supply Management (ISM) is scheduled to release the US Manufacturing Purchasing Managers Index (PMI) report today during the early New York session. According to the median projection of different economists, the ISM manufacturing PMI remained 53.1 points in June as compared to 52.8 points in the month before. Generally speaking, higher reading above 50 is seen as bullish for the US Dollar and vice versa so a better than expected actual outcome might incite renewed selling pressure in the price of NZDUSD.
Trade Idea
Considering the overall technical and fundamental outlook, buying the NZDUSD around current levels could be a good option if we get a valid reversal candle such as bullish pin bar or bullish engulfing candle.
