The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Thursday, increasing the price to more than 0.6300. The price increases after (Global Dairy Trade – GTD), a major economic release. The technical bias may remain bearish since the price observed a higher low pattern in the recent downside move.
NZDUSD Technical Analysis
As of this writing, the pair is being traded around 0.6312, resistance may be seen around 0.6341, a major horizontal resistance ahead of 0.6428, the 38.2% Fib level and the comes another key resistance level at 0.6560 as shown in the graph below.
Coming towards the downside, the price may come across support around 0.6273, the confluence of two trend lines which is likely to act as a strong support level preventing the price from decreasing below the said level. Another horizontal support level is to hit the price at 0.6200, ahead of 0.6146, the trend line support as shown in the graph above. The technical bias may remain 0.6368, the major horizontal resistance level remains intact.
New Zealand GDT Economic Release
The Global Dairy Trade released the GTD price index recently. According to the stats, the GTD price index remained 0.2% this month, as compared to 2.0% during the month before, up beating the economists’ expectation which was 0.1%. It is to be noted that the figures concerning the GTD price index represent a weighted average percentage of the price change. The GDT Price Indices are used to give a true reflection of the price movements relating to trade events, thereby, eliminating the bias factor which could have been accused of manipulation if simple weighted average figures were used.
Considering the price behavior of the pair over the last four days, buying the NZDUSD around current levels may be a good decision in the short to medium term. However, opening up a long position might not work.