NZDUSD extends its daily gains above 0.5900 following an upbeat US NFP report. (Pivot Orderbook analysis)

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• NZDUSD extends its daily gains above 0.5900 following an upbeat US NFP report.
• The United States economy added more than 260K jobs, beating estimates, but wages increased, adding to inflationary pressures.
• The US Dollar remains offered, despite printing a solid employment report, down 1.45% as shown by the US Dollar Index.

The pair currently trades last at 0.5901.

The previous day high was 0.5843 while the previous day low was 0.5741. The daily 38.2% Fib levels comes at 0.578, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5804, expected to provide support.

The NZDUSD advances and pierces the 50-day Exponential Moving Average (EMA) following the release of upbeat US employment data, while wages rose steadily, which would not deter the US Federal Reserve from tightening monetary policy conditions. At the time of writing, the NZDUSD is trading at 0.5902.

The US Dollar continues to weaken, even though the US jobs report was better than expected, with the Nonfarm Payrolls report for the last month exceeding estimates of 200K, increased by 261K. Even though the figures were solid, they came below September’s upward revision to 315K. Of note is that Average Hourly Earnings stood steadily at around 4.7%, as predicted, but lower than the previous month’s 5% jump.

Regarding the Unemployment Rate, it jumped as the Federal Reserve wanted, from 3.5% in September to 3.7% in October.

The Federal Reserve would continue to tighten conditions given October’s labor market figures. Albeit Jerome Powell and Co. revealed that they would slow the pace of interest-rate increases, they would look for the next week’s Consumer Price Index (CPI) for October, alongside the University of Michigan (UoM) Consumer sentiment and inflation expectations.

On the US Nonfarm Payrolls release, the NZDUSD edged towards the 0.5800 figure, beneath the confluence of the 50 and 100-hour Exponential Moving Averages (EMAs), before rallying towards fresh two-day highs at around 0.5900, hurdling on its way north, the R1 and R2 daily pivot levels, but shy of the weekly high at 0.5941.

The Relative Strength Index (RSI) is pushing higher towards overbought conditions, though it remains short of reaching the 80 level, used by most traders as the most-extreme overbought condition when an asset is in a strong uptrend. Nevertheless, caution is warranted as the major approaches the R3 daily pivot at 0.5920, opening the door for NZD buyers to book profits in the event of a pullback.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.5901 at the time of writing. Pair opened at 0.5772 and is trading with a change of 2.23 % .

The pair is trading above its 20 Daily moving average @ 0.5702, above its 50 Daily moving average @ 0.5835 , below its 100 Daily moving average @ 0.6043 and below its 200 Daily moving average @ 0.6344

The previous day high was 0.5843 while the previous day low was 0.5741. The daily 38.2% Fib levels comes at 0.578, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5804, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5728, 0.5683, 0.5625
• Pivot resistance is noted at 0.583, 0.5888, 0.5932

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