The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of NZDUSD to more than 0.7000 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 0.7012. A support can be noted around 0.7008, an immediate trendline support ahead of 0.7000 the psychological number and then 0.6953, 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 Nonfarm Payrolls
The unemployment rate fell to 3.9 percent in April, an 18-year low, even as nonfarm payrolls rose by just 164,000, according to a report Friday from the Bureau of Labor Statistics.
Economists surveyed by Reuters had expected payroll growth of 192,000 and the jobless rate to drop by one-tenth of a percent to 4.0 percent. The official jobs tally showed an increase from an upwardly revised 135,000 in March.
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.