The New Zealand Dollar (NZD) rose against the US Dollar (USD) on Monday, increasing the price of NZDUSD to more than 0.6500, ahead of US new home sales news. The technical bias remains bullish since the price marked a higher high in the recent upside move.
As of writing this piece, the NZDUSD is being traded around 0.6543 with a few major hurdles ahead. Given below are the key resistance levels for the pair;
1st Resistance : 0.6580, the key horizontal resistance
2nd Resistance: 0.6600, the psychological number
3rd Resistance: 0.6643, the confluence of two upper trendline arms
On the downside, the pair is likely to come across a few support levels listed below;
1st Support : 0.6478, the high of June 18, 2020
2nd Support: 0.6443, the horizontal support level
3rd Support : 0.6400, the psychological number
The technical bias is expected to remain bullish as long as the 0.6400, the support level stays intact.
United States New Home Sales News
The US Consensus bureau is scheduled to release the data concerning new home sale on Tuesday. According to the economist expectations, the reading for the US new home sales remained 0.75 Million in July as compared to 0.776 Million in the month before. The new home sales data is considered an important economic indicator since it unveils the trend showing consumers’ willingness to spend on financing and furnishing their homes. Generally speaking, a high reading suggests strengthening of the US Dollar hence predicts a bearish market trend for the NZDUSD and vice versa.
Given the micro economic outlook, buying the NZDUSD around above-mentioned support levels might be a good decision in short to medium term trading.