The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of NZDUSD to more than 0.7300 following some key economic releases. The technical bias shall remain bearish because of a lower high in the recent upside move.
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7342. A support can be noted around 0.7135, an immediate trendline support ahead of 0.7100 the psychological number and then 0.7053, another key horizontal support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.7377, 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. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.
US Jobless Claims News
The number of Americans filing for unemployment benefits rose just marginally last week, suggesting strong job growth in March that should underpin consumer spending.
Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 229,000 for the week ended March 17, the Labor Department said on Thursday. Claims dropped to 210,000 during the week ended Feb. 24, which was the lowest level since December 1969.
Economists polled by Reuters had forecast claims dipping to 225,000 in the latest week. Claims have now been below the 300,000 threshold, which is associated with a strong labor market, for 159 straight weeks. That is the longest such stretch since 1970, when the labor market was much smaller.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.