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The FxPro Analyst Team

NZD/USD Tests Short Term Major Support Level Post Hitting a 9-Week Low

NZD/USD hit a 9-week low of 0.6889 yesterday.

This month we have seen the longest NZD/USD bearish streak for this year. The significant level at 0.7000 was broken on 6th Mar.

However, the current price is testing the next short term major support level at 0.6880, where provides a stronger support. The downtrend will likely to be held temporarily above this level.

On the 4 hourly chart, the price has been moving from the lower band to the middle band by the Bollinger Band indicator, suggesting the bearish momentum is waning.

The daily Stochastic Oscillator is below 10, indicating oversold and a likely rebound.

The resistance level is at 0.6920, followed by 0.6950 and 0.6980.
The support line is at 0.6880, followed by 0.6850 and 0.6830.

Keep a very close on the crucial US labour market data (for Feb) due to be released this afternoon at 13:30 GMT. It will include non-farm payroll headline and revision figures, unemployment rate and average hourly earnings.

If the US labour market data is better-than-expected, it will likely weigh on NZD/USD and test the support line at 0.6880 again.

If the US labour market data is weaker-than-expected, it will likely push NZD/USD up and test the resistance levels.

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