The New Zealand Dollar (NZD) rose against the US Dollar (USD) on Thursday, increasing the price of NZDUSD to more than 0.6500 following some key economic releases. The technical bias may turn 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 0.6555. A hurdle can be noted near 0.6575, an immediate confluence of a trendline and horizontal resistance level ahead of 0.6611, the 61.8% Fib level resistance and then 0.6656, the trendline resistance level as demonstrated in the given below chart.
On the downside, a support can be noted around 0.6495, an immediate horizontal support level ahead of 0.6475, a trendline support and then 0.6423, a key horizontal support as demonstrated in the given below chart. The technical bias shall remain bearish as long as the 0.6575 resistance area is intact.
United States Nonfarm Payrolls
Non-farm payrolls in the United States increased by 201 thousand in August of 2018, following a downwardly revised 147 thousand in July and above market expectations of 191 thousand. Employment increased in professional and business services, healthcare, wholesale trade, transportation and warehousing, and mining.
Non-Farm Payrolls in the United States averaged 126.88 Thousand from 1939 until 2018, reaching an all-time high of 1115 Thousand in September of 1983 and a record low of -834 Thousand in October of 1949. Generally speaking, higher employment numbers indicate a bullish market for the US Dollar (USD) whereas a low rate of employment implies a bearish trend for the US Dollar (USD).
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.