The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Wednesday, 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 high in the recent upside move.
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.6890. 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.
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. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.
US Retail Sales
U.S. retail sales rose at a solid pace in April, a sign that consumers may be rebounding from weak spending earlier this year and driving stronger economic growth.
Retail sales increased at a 0.3 percent rate in April, the Commerce Department said Tuesday, down from a 0.8 percent gain in March, which was revised higher from 0.6 percent. The spending gains were spread across most retail categories, with especially big gains at furniture and clothing stores.
Consumer spending has rebounded in the past two months after a weak January and February, a trend that could accelerate growth in the April-June quarter.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.