FXOpen
The New Zealand Dollar (NZD) extended upside movement against the US Dollar (USD) on Friday, increasing the price of NZDUSD to more than 0.7280 ahead of crucial US employment data. The technical bias remains bearish because of a Lower low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded near 0.7286. A hurdle can be noted around 0.7295-0.7300, the confluence of horizontal resistance area as well as psychological number as demonstrated in the given below chart. A break and daily closing above the 0.7300 resistance could incite renewed buying interest, validating a move towards the 0.7500 region in the medium term.
On the downside, the pair is likely to find a support around 0.7227, the intraday low of yesterday ahead of 0.7204, the swing low of the recent downside move and then 0.7000, the psychological number. The technical bias will remain bearish as long as the 0.7380 resistance is intact.
ISM Manufacturing Index
Manufacturing activity in the U.S. fell more than expected in August to a seven-month low, according to an industry report released on Thursday. The Institute for Supply Management said its index of manufacturing activity dropped to 49.4 last month from July’s reading of 52.6. That was the worst reading on the index since January of this year and missed expectations for a slight drop to 52.0.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction. The new orders index also entered contraction, falling to 49.1 in August from 56.9 a month earlier. The employment index moved down to 48.3 last month from the prior 49.4, compared to a forecast for an increase to 49.6.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair on a breakout above the 0.7300 resistance could be a good strategy.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. 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
Gold Price Plunges After Climbing to $3,500 for the First Time
As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading
Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.
Moreover, the price is
Four 1-Minute Strategies for Scalpers
Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.