Date: 06 Feb 2019

February 6th is Waitangi Day in New Zealand, a national holiday. However, by 9:45 p.m. GMT when the Employment and Unemployment numbers are announced, in Wellington, New Zealand, it is already 10:45 a.m local time and thus a new day.

Let’s forget the time difference, which can be confusing, and focus on the technical chart picture of the NZDUSD pair.

On the weekly chart, the NZDUSD has been above and below the 0.690 level for the past two and a half years. And it’s back on that level now.

The MACD is in positive territory, and the histogram is weakening.

If the bulls manage to drive the market further up, a structural level from the weekly chart lies in the range of 0.6925, which has to be overcome on the way up. This would clear the way to the old December highs in the field of 0.6957. If these are overcome sustainably, there is a possibility that the market will head for the important resistance zone at 0.739.

However, if the bulls cannot assert themselves, then the next support is waiting in the range of 0.6818. If the market does not find any signs of starvation here and continues to fall, the field around 0.670 could offer the next support.

 

NZDUSD Daily Chart | Source: ActivTrader

NZDUSD Daily Chart | Source: ActivTrader

 

Written by Daniel Schuetz, External Analyst

 

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