Possibility of the NZD/USD turning bearish if the support key is broken near 0.7215

the states United -  Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index 

Yesterday, at 3:00 pm GMT  The Institute of Supply Management released its manufacturing purchasing managers' index for the United States. The US Manufacturing Purchasing Managers' Index  Diffusion index level based on a survey of 400 purchasing managers.

Purchasing managers in the United States are involved in the supply side of the economy. where you work  Most companies reduce their expenses and production on the basis of their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Thus, binary options investors can easily get a feel for the sentiment regarding the economic situation in the country through ISM manufacturing PMI readings.

Last month, the ISM Purchasing Managers' Index for the United States came in at 49.4 and expectations for this month were due to be at  50,4. However, the actual number came in a little better, at 51.5.

New Zealand - Dairy Global Circulation Price Index

Later the same day, at 3:06 p.m.  In GMT, the Global Dairy Trading will release the Global Dairy Trading Price Index, which measures changes in the average price of dairy products auctioned in New Zealand. Since the bulk of New Zealand's exports to world markets consist of dairy products, the dairy price index acts as a leading indicator in the country's trade balance because higher dairy prices ensure that foreign buyers buy it at a higher price. Therefore, binary options traders use this data to forecast the trade balance in the future, which helps in evaluating the New Zealand dollar against other major currencies. Last month, the global traded price index for dairy came in at a 1.7% increase. However, this month the index is down about 3% as it puts downward pressure on the New Zealand dollar.

Trading recommendations for the New Zealand dollar currency pair  / U.S. dollar

nzdusddaily

After breaking above the downtrend line on May 31, 2016, the NZD/USD was in a continuous uptrend which formed a much respected uptrend line in the process.

After climbing about 700 pips over the past few months, the New Zealand dollar currency pair started...  The US dollar finally rebounded at the end of August and last week, as the pair broke below the uptrend line.

However, the price quickly found strong support around the 0.7215 level and so far, it has remained binding.

The New Zealand Dairy Global Trading Price Index was significantly lower than the previous period, and the fundamental outlook for NZD/USD was likely to be bearish. Moreover, the NZD/USD is trading near the upper end of the range so far, and is down about 55 pips today. There is a good chance that the pair will retest the 0.7215 level this week, and if this support is broken, it may attract additional bearish momentum in the market.

Under these circumstances, it would be advisable for binary options traders to consider setting up a NZD/USD short order with binary options brokers as soon as the price closes below the 0.7215 level on the daily time frame.

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Ahmed A.
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