HomeContributorsTechnical AnalysisNZD/USD Could Rally If It Clears This Resistance, US GDP Next

NZD/USD Could Rally If It Clears This Resistance, US GDP Next

Key Highlights

  • NZD/USD is attempting a recovery wave above the 0.5920 level.
  • A major bearish trend line is forming with resistance near 0.5950 on the 4-hour chart.
  • EUR/USD is accelerating lower toward the 1.0500 level.
  • The US Gross Domestic Product could grow 2.1% in Q2 2023.

NZD/USD Technical Analysis

The New Zealand Dollar started a fresh decline from the 0.5985 resistance against the US Dollar. NZD/USD traded below the 0.5950 support to enter a bearish zone.

Looking at the 4-hour chart, the pair settled below the 0.5940 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

It traded as low as 0.5899 and recently started a minor upside correction. There was a move above the 0.5920 level. The pair is now facing resistance near the 0.5945 level and the 100 simple moving average (red, 4 hours).

There is also a major bearish trend line forming with resistance near 0.5950 on the same chart. A close above 0.5950 could start a steady increase toward 0.5985.

Any more gains might send NZD/USD toward the 0.6050 resistance. On the downside, initial support is near the 0.5920 level. The next key support is seen near the 0.5885 level, below which it could test 0.5850. Any more losses might send the pair toward the 0.5800 level.

Looking at EUR/USD, the pair remained in a bearish zone and might continue to move down below the 1.0500 level.

Economic Releases

  • US Initial Jobless Claims – Forecast 215K, versus 201K previous.
  • US Gross Domestic Product for Q2 2023 – Forecast 2.1% versus previous 2.1%.
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