The price movement on the chart of the NZD/USD currency pair remains showing a bullish trend pattern for a period of 3 consecutive weeks after reaching a 2-year low on October 13.
The New Zealand dollar still managed to survive to trade stable compared to the US dollar which was rained on by various factors and speculation, making investors remain cautious in assessing the movements of the king of the currency.
Focusing on the opening of the Asian session this morning (Wednesday), the New Zealand employment data report showed a mixed reading with an increase of 1.3% higher than the 0.5% expectation for employment growth for the third quarter.
However, the unemployment rate remained at 3.3%, falling short of expectations to drop to 3.2%.
The New Zealand dollar however did not show a significant reaction after the release of the report, but continued to rise towards the end of the Asian session at a slow pace.
It can be observed on the NZD/USD chart that the price is still trying to continue the upward pattern this morning despite the drastic decline in the previous session.
On Tuesday yesterday, the price has made an increase up to a level of around 0.59000, recording a 6-week high before falling again in the New York session following the strengthening of the US dollar.
The price decline is however supported by the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the NZD/USD chart, showing that the price is still moving in a bullish trend.
If the price increase is still successfully maintained, the higher target to aim for is at 0.59300 after overcoming yesterday's highs.
However, if the bullish pattern has failed to be maintained, a drop in price if it crosses the MA50 support will test the 0.58000 support level at the RBS (resistance becomes support) zone.
After investors assess the signal of a bearish trend change, the price is seen to head towards the zone around 0.57300 before an extended decline could reach up to 0.56000.
