Key Highlights
- NZD/USD is facing resistance near 0.6000 and 0.6020.
- It broke a major bearish line with resistance near 0.5935 on the 4-hour chart.
- EUR/USD recovered above the 1.0880 resistance zone.
- The US nonfarm payrolls could increase by 170K in August 2023.
NZD/USD Technical Analysis
The New Zealand Dollar extended its decline below the 0.6050 level against the US Dollar. AUD/USD even broke the 0.6000 level to move further into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 0.6000 level, the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
The pair tested the 0.5885 zone. A low was formed near 0.5886 and the pair is now attempting a recovery wave. It broke the 23.6% Fib retracement level of the downward move from the 0.6225 swing high to the 0.5886 low.
Besides, NZD/USD broke a major bearish line with resistance near 0.5935 on the same chart. On the upside, an initial resistance is near the 0.5975 level and the 100 simple moving average (red, 4 hours).
The first major resistance is near the 0.6000 level or the 38.2% Fib retracement level of the downward move from the 0.6225 swing high to the 0.5886 low.
A close above 0.6000 could start a decent increase. In the stated case, the pair could rise toward the 0.6050 level. Any more gains could send the pair toward the 0.6120 level.
If not, the pair might start a fresh decline below the 0.5940 support. The next key support is seen near the 0.5885 level. If there is a move below 0.5885, the pair could dive toward 0.5820.
Looking at EUR/USD, the pair is gaining pace and is currently eyeing a move above the 1.0940 level in the near term.
Economic Releases
- Germany’s Manufacturing PMI for August 2023 – Forecast 39.1, versus 39.1 previous.
- Euro Zone Manufacturing PMI for August 2023 – Forecast 43.7, versus 43.7 previous.
- UK Manufacturing PMI for August 2023 – Forecast 42.5, versus 42.5 previous.
- US ISM Manufacturing PMI for August 2023 – Forecast 47.0, versus 46.4 previous.
- US nonfarm payrolls for August 2023 – Forecast 170K, versus 187K previous.
- US Unemployment Rate for August 2023 – Forecast 3.5%, versus 3.5% previous.
