The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of NZDUSD to more than 0.6700 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 0.6748. On the downside, a support can be noted around 0.6722, an immediate horizontal support ahead of 0.6699, the 38.2% Fib level support and then 0.6663, a key horizontal support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.6846, a horizontal resistance level ahead of 0.6947, the confluence of a trend line and a horizontal resistance level and then 0.7271, the horizontal resistance level as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.6814 resistance area is intact.
US ISMI Prices Paid News
In the US, the figure concerning the price index of ISMI remained 72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is copied from the news released by the US Institute for Supply Management.
It shows 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 ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is taken as a bullish trend for the US Dollar (USD) and vice versa.
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.