Thu, Dec 08, 2022 @ 15:36 GMT
HomeContributorsTechnical AnalysisNZD/USD Remains Supported Ahead of US CPI Report

NZD/USD Remains Supported Ahead of US CPI Report

Key Highlights

  • NZD/USD started a fresh increase above the 0.5800 resistance.
  • A major rising channel is forming with support near 0.5835 on the 4-hours chart.
  • Gold price might continue higher above $1,715 and $1,720.
  • The US CPI could increase 8% in Oct 2022 (YoY), down from 8.2%.

NZD/USD Technical Analysis

The New Zealand Dollar formed a base above the 0.5600 against the US Dollar. NZD/USD started a fresh increase above the 0.5700 and 0.5750 resistance levels.

Looking at the 4-hours chart, the pair remained well bid and climbed above the 0.5800 level. It even closed above the 0.5850 level, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).

The bulls pushed the pair above the 0.5900 level. It traded as high as 0.5999 and failed to surpass the 0.6000 resistance zone. The pair is now correcting lower below 0.5950.

There was a move below the 38.2% Fib retracement level of the upward move from the 0.5740 swing low to 0.5999 high. An initial support is near the 0.5870 level.

The 50% Fib retracement level of the upward move from the 0.5740 swing low to 0.5999 high is also near the 0.5870 level. The next major support is near the 0.5835 zone. There is also a major rising channel forming with support near 0.5835 on the same chart.

The main support sits at 0.5800 zone or the 100 simple moving average (red, 4-hours). A close below the 0.5800 level could increase selling pressure. In the stated case, it could decline towards the 0.5720 support.

On the upside, the pair could face hurdles near 0.5940 level. The next major resistance may perhaps be near 0.6000. Any more gains could set the pace for a move towards the 0.6050 level, above which it could even test 0.6120.

Looking at gold price, there was a strong upward move above the $1,680 level and it seems like the price might even climb above the $1,720 level.

Economic Releases

  • US Consumer Price Index for Oct 2022 (MoM) – Forecast +0.6%, versus +0.2% previous.
  • US Consumer Price Index for Oct 2022 (YoY) – Forecast +8.0%, versus +8.2% previous.
  • US Consumer Price Index Ex Food & Energy for Oct 2022 (YoY) – Forecast +6.5%, versus +6.6% previous.
  • US Initial Jobless Claims – Forecast 220K, versus 217K previous.
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