NZDUSD backtracks as economic debacle looms.
“Kiwi slipped as domestic economic data disappoints while risk adverse sentiment makes a comeback.”
Kiwi undergoes substantial pullback as recent economic data shows economic vulnerability. According to reports, Unemployment rate rose from 3.2% to 3.3% while Employment Change for second quarter comes in at 0%. Evidently, recent data shows bleak economic outlook, which may create more conundrum for Reserve Bank of New Zealand in terms of policy adjustments. On the other hand, greenback extended gains from the downside following escalating tension in between US and China over former’s visit to Taiwan.
Quick recap of NZDUSD
Recent rebound was short-lived as the overall structure is skewed towards the downside.
NZDUSD Weekly Technical Analysis
While MACD shows diminished bearish momentum, the pair struggles to overcome increasing selling pressure from the upside.
NZDUSD Daily Technical Analysis
From daily perspective, NZDUSD retraced prior to psychological level of 0.6400 while forming a new downward trendline.
Trading Idea
ORDER: SELL STOP
ENTRY: 0.6185
STOP LOSS: 0.6260
Target 1: 0.6100
Target 2: 0.6060
ZFX Analyst’s Comment
In general, the pair remains tilted towards the downside as recent bullish rebound fails to overcome bears from the upside. We expect the pair to extend its weakness upon a successful closure below 0.6217.
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