Forex Trading: NZDUSD Technical Analysis – August 10, 2018

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The New Zealand Dollar (NZD) inched lower against the US Dollar (USD) on Friday, decreasing the price of NZDUSD to less than 0.6800 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 0.6750. 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 0.6708, an immediate trendline support ahead of 0.6700 the psychological number and then 0.6653, 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 Jobless Claims

The number of Americans filing for unemployment benefits rose less than expected last week, pointing to sustained strength in the labor market despite trade tensions.

Other data on Thursday showed new orders of U.S-made goods rose for a second straight month in June, but business spending on equipment appeared to be slowing further.

Initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 218,000 for the week ended July 28, the Labor Department said on Thursday. Claims dropped to 208,000 during the week ended July 14, which was the lowest reading since December 1969. Economists polled by Reuters had forecast claims rising to 220,000 in the latest week.

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.

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