Key Highlights
- NZD/USD started a fresh increase from the 0.6735 support zone.
- It broke a major bearish trend line with resistance near 0.6790 on the 4-hours chart.
- EUR/USD cleared the 1.1380 resistance, and GBP/USD extended gains above 1.3620.
- The US CPI increased 7% in Dec 2021 (YoY), like the market forecast.
NZD/USD Technical Analysis
This past week, the New Zealand Dollar formed a base above 0.6730 against the US Dollar. NZD/USD started a fresh increase above the 0.6750 and 0.6770 resistance levels.
Looking at the 4-hours chart, the pair gained pace above the 0.6800 resistance, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
Besides, there was a break above a major bearish trend line with resistance near 0.6790 on the same chart. The pair even climbed above the 61.8% Fib retracement level of the downward move from the 0.6837 swing high to 0.6733 low.
On the upside, the pair is facing resistance near 0.6840 level. The next major resistance is near the 0.6860 level, above which the pair could test 0.6900.
On the downside, there is a decent support forming near 0.6790. The main support is forming near the 0.6740 level, below which the pair could drop to 0.6700.
Looking at EUR/USD, the pair was able to clear the 1.1380 resistance zone. Besides, GBP/USD rallied above the 1.3600 and 1.3650 resistance levels.
Economic Releases
- US Initial Jobless Claims – Forecast 200K, versus 207K previous.
- US Producer Price Index for Dec 2021 (MoM) – Forecast +0.4%, versus +0.8% previous.
- US Producer Price Index for Dec 2021 (YoY) – Forecast +9.8%, versus +9.6% previous.
