NZDUSD Technical Analysis – April 01, 2021

The New Zealand Dollar (NZD) rose against the U.S. Dollar (USD) on Thursday, increasing the price of the NZDUSD to more than 0.6900, ahead of the release of the U.S. ISM Services PMI news.

Technical Analysis 

As of this writing, the NZDUSD pair affirms around 0.6980. While moving upward, the pair might face some resistance near the listed price levels. 

Resistance 

0.7079 – the high of December 04, 2020

0.7108 – the major horizontal resistance

0.7150- the upper trendline arm

On the downside, the NZDUSD pair might find some support near the listed price levels. 

Support 

0.6949 – the immediate trendline support 

0.6900- the psychological level

0.6803 – the low of November 10, 2020

U.S. ISM Services PMI News 

The Institute for Supply Management (ISM) anticipates releasing numbers for the U.S. ISM Services PMI news on April 05, 2021. According to economists’ estimates, the ISM Services PMI might register a reading of 57.4 in March, as compared to the reading of 55.3, in the month before. 

The ISM Services PMI reflects business conditions in the non-manufacturing sector of the United States over the given period. It is worth noting that the ISM Services PMI does not affect the country’s GDP much as compared to the manufacturing PMI. Generally speaking, a reading above 50 strengthens the U.S. Dollar (USD) and suggests a bearish trend for the NZDUSD pair and vice versa. 

Conclusion

Given the macro-economic outlook of the pair over the past few days, selling the pair around 0.7050 might be a worthwhile trading decision in the short term.