The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Friday, this led to an increase in the price of NZDUSD making the total appear more than 0.6800. The price of the pair increased after major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias shall remain bearish because the pair’s price marked a lower low in the recent downside move.
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.6845, a resistance may be seen around 0.6874, the trendline resistance ahead of 0.6900, the psychological number and then 0.6941, the key horizontal resistance level as demonstrated in the given below chart.
Coming towards the upside, support can be witnessed around 0.6792, the major horizontal support level. Another support may come around 0.6768, the trend line support and then 0.6700, the 61.8% Fib level support as demonstrated in the given above chart. The technical bias may remain bearish as long as 0.6792, the major horizontal support remains intact.
United States ISMI Prices Paid News
In the United States, the figure concerning the price index of ISMI remained 60.7 in November, as compared to 60.3 during the month before, down beating the economist expectation which was 59.2. The data is taken from the news released by the US Institute for Supply Management.
The data represents 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 ISMI figure is usually considered as sensitive to the US economy and may instigate inflation in the future.
Generally speaking, high reading in this regard is considered as a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market for the US Dollar (USD).
Considering the overall price behavior of the pair over the last couple of days, selling the NZDUSD around current levels can be a good decision in short to medium term.