Key Highlights
- NZD/USD is likely to face hurdles near the 0.7000 resistance zone.
- A major bearish trend line is forming with resistance near 0.6980 on the 4-hours chart.
- EUR/USD remains well below 1.1850, GBP/USD accelerated lower below 1.3700.
- Crude oil price declined heavily below the $70.00 support zone.
NZD/USD Technical Analysis
The New Zealand Dollar gained bearish momentum below 0.7000 against the US Dollar. NZD/USD tested 0.6880 and it is now attempting an upside correction.
Looking at the 4-hours chart, the pair traded as low as 0.6880. It even settled well below the 0.7000 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair recovered above the 23.6% Fib retracement level of the key drop from the 0.7043 swing high to 0.6880 low. The first key resistance is near the 0.6950 level.
The next key resistance is now forming near the 0.6960 level. It is near the 50% Fib retracement level of the key drop from the 0.7043 swing high to 0.6880 low. There is also a major bearish trend line forming with resistance near 0.6980 on the same chart.
To move into a positive zone, the pair must settle above the 0.7000 resistance. Conversely, the pair might continue to move down below 0.6880. The next major support is near the 0.6820 level.
Looking at EUR/USD, the pair is still trading well below the 1.1850 resistance. Besides, GBP/USD traded towards 1.3570 before it found support.
Economic Releases
- ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
- US Initial Jobless Claims – Forecast 350K, versus 360K previous.
