The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Monday, increasing the price of NZDUSD to more than 0.7000 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.

NZD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7044. On the upside, a hurdle can be noted near 0.7395, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart.

On the downside, a support can be noted around 0.6808, an immediate trendline support ahead of 0.6800 the psychological number and then 0.6753, another key horizontal support as demonstrated in the given below chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.

US Durable Goods

New orders for US manufactured durable goods slumped 1.7 percent month-over-month in April of 2018, following an upwardly revised 2.7 percent rise in March. It compares with market expectations of a 1.4 percent drop as orders for transportation equipment tumbled 6.1 percent. However, orders for non-defense capital goods excluding aircraft, a proxy for business spending, jumped 1 percent, reversing from a 0.9 percent decrease in March.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.