The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Monday, increasing the price of NZDUSD to more than 0.6800 following some key economic releases. The technical bias may remain bullish because of a lower high in the recent downside move.
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.6848, a hurdle can be noted near 0.6906, the trendline resistance level ahead of 0.7000, the psychological number and then 0.7094, the confluence of a trendline and a horizontal resistance level as demonstrated in the given below chart.
On the downside, a support can be noted around 0.6831, an immediate horizontal support ahead of 0.6817, the trendline support and then 0.6799, the 38.2% Fib level support as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.6837 support 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) and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.