NZD/USD technical analysis: Remains below 10-DMA despite upbeat China PMI data
|- NZD/USD recovers after China’s Caixin Manufacturing PMI beat the forecast.
- Prices keep trailing 10-DMA with falling trend-line since early-July offering key downside support.
NZD/USD recovers early-day losses as it trades near 0.6306 during Monday’s Asian session.
China’s August month Caixin Manufacturing Purchasing Managers’ Index (PMI) surged to five-month high as it grew beyond 49.8 forecasts to 50.4.
Despite pair’s latest uptick, prices are less likely to be termed strong, not even for a short-term, as 10-day simple moving average (DMA) level of 0.6364 holds the quote confined, which if broke could trigger fresh upside to August 07 low of 0.6378 and then to 21-DMA near 0.6414.
On the downside break of the latest low surrounding 0.6283, prices can slip further south to a falling trend-line stretched since July 10, at 0.6200.
It should also be noted that 12-bar moving average convergence and divergence (MACD) is showing likely reversal of the bearish signal and can propel prices on the break of immediate resistance.
NZD/USD daily chart
Trend: bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.