Key Highlights
- NZD/USD is moving higher from the 0.6225 zone.
- It broke a major bearish trend line with resistance near 0.6275 on the 4-hour chart.
- EUR/USD is holding gains above the 1.1150 support.
- GBP/USD corrected lower sharply from the 1.3140 zone.
NZD/USD Technical Analysis
The New Zealand Dollar found support near 0.6225 against the US Dollar. NZD/USD started a decent increase and broke the 0.6250 resistance.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance. There was a move above the 23.6% Fib retracement level of the downward move from the 0.6411 swing high to the 0.6225 low.
The pair is now trading above 0.6280 and the 200 simple moving average (green, 4 hours). It is facing resistance near the 0.6320 level and the 100 simple moving average (red, 4 hours).
The 50% Fib retracement level of the downward move from the 0.6411 swing high to the 0.6225 low is also near the 0.6320 zone. The next major resistance is near 0.6340. If there is a move above the 0.6340 resistance, the pair could rise toward 0.6380.
Any more gains might send the pair toward the 0.6410 resistance zone in the near term. Immediate support is near the 0.6280 level.
The next major support is seen near the 0.6225 level, below which there could be a drop to 0.6200. Any more losses might send the pair toward the 0.6150 support zone.
Looking at EUR/USD, the pair is now consolidating gains above 1.1150 and might attempt another increase in the near term.
Economic Releases
- US Existing Home Sales for June 2023 (MoM) – Forecast -0.1%, versus +0.2% previous.
- US Initial Jobless Claims – Forecast 242K, versus 237K previous.
