Forex Trading: NZDUSD Technical Analysis – December 06, 2018

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The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Thursday, decreasing the price of NZDUSD to less than 0.6900 following some key economic releases. The technical bias may remain bullish because of a higher high in the recent upside move.

NZD/USD Technical Analysis

As of this writing, the pair is being traded around 0.6891, a support can be noted around 0.6760, the major horizontal support level ahead of 0.6631, the 61.8% Fib level support and then 0.6547, the trendline support as demonstrated in the given below chart.NZDUSD

On the upside, a hurdle can be noted near 0.7048, the 61.8% Fib level resistance ahead of 0.7215 the trendline resistance and then comes 0.7436, the major horizontal resistance as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.6809 support area is intact.

USD ISMI Prices Paid News

In the US, the figure concerning the price index of ISMI remained  72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is copied from the news released by the US Institute for Supply Management.

It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.

The  ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is taken as a bullish trend for the US Dollar (USD) and vice versa.

Trade Idea

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

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