NZDUSD Technical Analysis | Forexlive

USD

The Fed left interest rates unchanged as
expected at the last meeting while dropping the tightening bias in the
statement but adding a slight pushback against a March rate cut.
The US CPI beat
expectations for the second consecutive month with the disinflationary trend
reversing.
The US PPI beat
expectations across the board by a big margin.
The US Jobless Claims beat
expectations with the data remaining steady.
The latest US PMIs
increased further from the prior month with the Manufacturing PMI beating
expectations and the Services PMI missing.
The US Consumer
Confidence missed expectations across the board.
The market now expects the first rate cut in June.

NZD

The RBNZ kept its official cash rate
unchanged dropping
the tightening bias and stating that the OCR will need to remain at restrictive
level for a sustained period.
The latest New Zealand inflation data printed in line with expectations
supporting the RBNZ’s patient stance.
The labour market report beat expectations across the
board with lower than expected unemployment rate and higher wage growth.
The Manufacturing PMI improved in January remaining in
contraction while the Services PMI jumped back into expansion.
The market expects the first cut in
August.

NZDUSD Technical Analysis –
Daily Timeframe

NZDUSD Daily

On the daily chart, we can see that NZDUSD has sold
off today following the RBNZ rate decision where the central bank tweaked the
statement dropping the tightening bias. There’s no support until
the key 0.6050 zone, so we can expect the price to reach those levels. That’s
where we can expect the buyers to step in with a defined risk below the support
to position for a rally into the 0.6277 level. The sellers, on the other hand,
will want to see the price breaking lower to increase the bearish bets into the
0.5875.

NZDUSD Technical Analysis –
4 hour Timeframe

NZDUSD 4 hour

On the 4 hour chart, we can see that after breaking
above the resistance zone, the price diverged with the
MACD, which
is generally a sign of weakening momentum often followed by pullbacks or
reversals. The price indeed pulled back into the resistance turned support, but as
soon as the price broke below the support following the RBNZ decision, the
sellers piled in aggressively to target the key 0.6050 support zone.

NZDUSD Technical Analysis –
1 hour Timeframe

NZDUSD 1 hour

On the 1 hour chart, we can see that there’s
not much to do here as the price stands right in the middle of the two key
zones. The sellers can either wait for a pullback into the resistance to short
the pair again or wait for the break below the support to increase the bearish
bets into new lows. The buyers, on the other hand, will likely step in at the
support to position for a rally into the resistance and increase the bullish
bets into the 0.6277 level on a break above the resistance.