The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Thursday, increasing the price of NZDUSD to more than 0.6850 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 0.6821. 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.
Fed Interest Rate
The Federal Reserve on Wednesday raised interest rates for the second time this year and brightened its projections for GDP growth in 2018, in a further endorsement of the U.S. economy’s strength and momentum.
The balance on the Fed’s interest-rate-setting committee has tipped in favor of two more rate hikes in 2018, rather than only one, bolstered by an uptick in the central bank’s projections for inflation this year and next.
Fed officials estimate the unemployment rate could fall to as low as 3.6 percent this year and 3.5 percent next year. It currently stands at 3.8 percent. They also predict the economy will grow 2.8 percent in 2018, up from their 2.7 percent projection in March, though the estimates for 2019 growth remain unchanged at 2.4 percent.
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.