NZD/USD Recovers to 0.6900 Handle
pair recovered from day's low of 0.6873 and moved back to 0.6900 as
traders seems to position themselves ahead of US private sector
Earlier during Asian session, the pair jumped to 0.6941 on better-than-expected New-Zealand’s employment number, released on Tuesday. The NZ employment report showed a 1.2% rise in the number of people employed in the first quarter of 2016. The unemployment rate, however, rose from a revised 5.4% in the December quarter to 5.7% as the number of people entering the labor force surpassed the number of workers that were able to find some work. Falling prices in dairy products also weighed down on the NZD/USD pair.
On technical chart, the pair already seems to have formed a bearish double-top chart pattern near 0.7050-55 area, which would be confirmed once the pair decisively weakness below an important horizontal support near 0.6850-45 zone. Hence, a decisive break below 0.6850-45 support would open room for extended period of weakness for the pair.
Technical levels to watch
On the immediate downside, 0.6850-45 area remains key support area to watch for. A decisive break below this key support seems to trigger a fresh leg of weakness for the immediately towards 50-day SMA support near 0.6810 level, which could further get extended towards 0.6775-70 support area.
On the upside, 0.6920 level seems to provide some immediate resistance, which if cleared is followed by a strong resistance near 0.6975-80 area, which now seems to cap any further near-term up-move for the pair.