NZD/USD Technical Analysis: Bulls target immediate resistance trendline after China data
|- NZD/USD stops the previous day’s declines after China’s upbeat inflation data.
- An upside clearance of the adjacent resistance line can refresh a four-month high.
- Sellers await a downside break of the one-week-old rising channel.
NZD/USD takes the bids to 0.6560 after China released November month inflation data on early Tuesday.
Not only headlines Consumer Price Index (CPI) but the Producer Price Index (PPI) also beat market consensus while flashing 4.5% and -1.4% respective figures on a yearly basis.
Read: China CPI a touch hotter than expected 4.5% vs 4.2% exp YoY
With this, the kiwi pair aims to challenge the immediate falling resistance line, at 0.6565, in order to register a fresh high beyond August month’s top, flashed recently, around 0.6590. In doing so, 0.6600 and late-July top close to 0.6640 will be in the focus.
Alternatively, pair’s declines below a two-week-old rising trend channel's support, near 0.6528, can trigger fresh selling towards 0.6490 and 61.8% Fibonacci retracement of November 25 to December 06 upside, at 0.6463.
NZD/USD four-hour chart
Trend: Bullish
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.