Traders have moved the price of the NZDUSD ahead of the key employment statistics

Technical Analysis

In New Zealand today, the key quarterly employment statistics will be released expectations at the unemployment rate is expected to rise to 4.3% from 3.9%. The labor cost index is expected to rise also by 0.8% versus 0.8% last month.

Technically, the price of the NZDUSD is “hanging around” some key/important technical levels. On the tops, the 200-day moving average comes in at 0.60856. A break above that level would disappoint the sellers this week who traded the break lower below that moving average and below the 100-day moving average as well. The 100-bar moving average of the 4-hour chart comes in at 0.6112 and that would be another level to get to and through that would increase the bullish bias.

On the downside, the aforementioned 100-day moving average which has been broken this week as well, comes in at 0.60639. Break below that level and stay below that level gives the sellers the go-ahead to push the price lower. The low price for week reached 0.6037. Below that traders would look toward the 61.8% retracement of the move up from the October low. That level comes near the natural support level at 0.6000.

So traders will take the clue from the jobs report. A stronger report would likely extend the price higher and above its 200-day moving average (more bullish). A weaker report would likely pushed the price below the 100-day moving average increasing the bearish bias.

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