The New Zealand Dollar (NZD) spiked higher against the US Dollar (USD) on Friday after the unprecedented Nonfarm Payrolls news. The technical bias remains bullish because of a Higher Low in the recent downside move on the daily chart.
Technical Analysis
As of this writing, the NZDUSD pair is being traded near 0.6933. A support may be noted around 0.6875, the horizontal support ahead of 0.6677, the swing low of the recent downside move as demonstrated in the following daily chart.
On the upside, the pair is likely to face a hurdle near 0.6966, the high of March 2016 ahead of 0.7055, the swing high of the recent upside rally on the daily chart. A break above 0.7055 will confirm the bullish bias, validating a move towards the 0.7500 region in the long run.
US Employment
The US economy added only 38,000 new jobs in May, the weakest performance since September 2010, the Labor Department said Friday. This reading is well below expectations of a 164,000 gain. Revisions showed employment gains for April and March were revised down by a combined 59,000 jobs, according to the labor department.
The unemployment rate however, fell to 4.7% in May from 5.0% in April. Expectations were for a 4.9% rate. Meanwhile, average hourly wages climbed 0.2% to $25.59. Hourly pay rose 2.5% from May 2015 to May 2016.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around 0.6875 appears to be a good strategy in short to medium term.
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