Yet another bad day for the New Zealand Dollar (NZD) as it has already been fighting for over a month, the country’s currency is steadily weakening, this makes the price fell below 0.6300. The price drops due to the release of multiple unfavorable economic releases.

The GDT Price Index published on 04 February 2020 by Global Dairy Trade fell its percentage from 1.7% to -4.7%. GDT Price Indices are used to escape the distortion of a simple weighted average price, and to provide a more accurate reflection of the price movements between events of trade.

In addition, on the same day, Statistics New Zealand’s participation rate also fell by 3 points from the last quarter’s index and was therefore revised at 70.1%. It is the percentage of the total number of labor-force age people (15 years and over) in the labor force (either employed or looking for work).

The NZDUSD at now set itself at a price of 0.6246. We noticed that the price at this stage is backed by 0.6203, the key horizontal support level, which is just below the price and is expected to help this to move ahead.

Sadly, the price at current, on the other hand, is pressurized by the number of the level of resistance that places a restriction on its rising, as the major horizontal and trend line resistane level may be seen around 0.6383 and 0.6408, respectively, keeping the price stick below these levels.

Conclusion

Able to trade at this stage constitutes potential dangers of its own, as the above graph now shows an utterly horrible image. Therefore ignoring trading at this stage could be the best solution for both short- and long-term traders because the technical bias might remain bearish for a while.