NZDUSD Technical Analysis | Forexlive
On the daily chart below for NZDUSD,
we can see that after falling into the 0.6084 support, the price bounced strongly and
it’s now eyeing the previous top of the range at 0.6276. The market at the
moment is trading on the basis that the Fed
has finished its tightening cycle, but as Fed Chair Powell said,
it will depend on the evolution of the economy and inflation going forward.
We keep seeing rangebound price
actions across many major currency pairs as the market can’t decide where to go
given that central banks may all be near the end of their tightening cycles and
there’s also the risk of a recession on the horizon. It seems like only two
things can save the USD now: the data picks up and the market will price more
hikes by the Fed, or we get a recession soon and the greenback appreciates as a
safe haven.
On the 4 hour chart below, we can
see that the price recently broke above the trendline and extended the rally to the
0.6250 price level. The moving
averages are crossed to the upside, and they are acting as support for the
buyers. The upward trendline is defining the bullish momentum, so a break below
it will be seen as a change in sentiment and the sellers may start piling in
for a fall towards the 0.6084 support again.
On the 1 hour chart below, we can
see the levels of interest for the buyers and sellers. If the price pulls back
to the trendline and the support zone at 0.6215, the buyers are likely to lean
on that area with defined risk just below the last low. Alternatively, the
buyers may also pile in in case the price rallies above the 0.6260 high.
The sellers, on the other hand,
will want to see a break below the trendline and the last low before jumping
onboard and extend the selloff towards the 0.6084 support. Today, we have the US Jobless Claims report and since it’s been a
market mover lately, keep an eye on it as a big miss or beat should give the
USD a boost.