Key Highlights
- NZD/USD is struggling to recover above the 0.6100 resistance zone.
- A key bearish trend line is forming with resistance near 0.6140 on the 4-hour chart.
- GBP/USD is facing a strong resistance near the 1.2550 zone.
- The US Initial Jobless Claims could rise from 232K to 235K.
NZD/USD Technical Analysis
The New Zealand Dollar dropped heavily below the 0.6200 level against the US Dollar. NZD/USD traded below the 0.6060 level before the bulls appeared.
Looking at the 4-hour chart, the pair traded as low as 0.5985 and settled below the 100 simple moving average (red, 4 hours). Recently, there was an upside correction above the 0.6060 resistance zone.
The pair climbed above the 23.6% Fib retracement level of the downward move from the 0.6302 swing high to the 0.5985 low. The pair is now facing resistance near the 0.6100 level. The first major resistance is near the 0.6140 level.
There is also a key bearish trend line forming with resistance near 0.6140 on the same chart. The trend line is near the 50% Fib retracement level of the downward move from the 0.6302 swing high to the 0.5985 low.
If there is a move above the 0.6140 resistance, the pair could drift toward 0.6180. If there is no wave above 0.6140, the pair could dip toward 0.6000.
The next major support is near the 0.5980 level. If there is a downside break below the 0.5980 support, the pair could decline toward the 0.5950 support.
Looking at GBP/USD, the pair is now consolidating and might make another attempt to clear the 1.2550 resistance zone.
Economic Releases
- Euro Zone Gross Domestic Product for Q1 2023 (QoQ) – Forecast 0%, versus 0.1% previous.
- Euro Zone Gross Domestic Product for Q1 2023 (YoY) – Forecast 1.2%, versus 1.3% previous.
- US Initial Jobless Claims – Forecast 235K, versus 232K previous.
