Key Highlights
- NZD/USD climbed above 0.7000 before it started a downside correction.
- It broke a crucial bullish trend line with support near 0.6945 on the 4-hours chart.
- EUR/USD settled below the key 1.0950 support.
- GBP/USD is at a risk of a downside break below 1.3000.
NZD/USD Technical Analysis
The New Zealand Dollar started a steady increase above the 0.6880 resistance against the US Dollar. NZD/USD traded above the 0.6950 resistance zone and extended increase.
Looking at the 4-hours chart, the pair even broke the 0.7000 resistance. The pair settled above the 200 simple moving average (green, 4-hours) and the 100 simple moving average (red, 4-hours).
A high was formed near 0.7034 before it started a downside correction. There was a move below the 0.7000 and 0.6980 support levels. The pair declined below the 50% Fib retracement level of the upward move from the 0.6896 swing low to 0.7034 high.
Besides, it broke a crucial bullish trend line with support near 0.6945 on the same chart. An immediate support is near the 0.6900 level and the 100 simple moving average (red, 4-hours).
The next major support is near the 0.6860 level (a key multi-touch zone). A downside break below the 0.6860 support level might start a major decline.
On the upside, an immediate resistance is near the 0.6965 level. The next major resistance is near the 0.7000 level. Any more gains might send the pair towards the 0.7050 level in the coming sessions.
Looking at EUR/USD, the pair settled below the 1.0950 support zone, opening the doors for more downsides in the near term. Similarly, GBP/USD could dive if it breaks the 1.3000 support.
Economic Releases
- US Initial Jobless Claims – Forecast 200K, versus 202K previous.
