Key Highlights
- NZD/USD started a major decline from well above the 0.6400 zone.
- A key bearish trend line is forming with resistance near 0.6180 on the 4-hours chart.
- GBP/USD extended its decline and tested the 1.1800 zone.
- EUR/USD might gain bearish momentum if it breaks the 1.0535 support.
NZD/USD Technical Analysis
The New Zealand Dollar started a major decline from well above 0.6400 against the US Dollar. NZD/USD declined below the 0.6250 support to move into a bearish zone.
Looking at the 4-hours chart, the pair traded below the 0.6150 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It traded as low as 0.6084 and is currently consolidating losses. An immediate resistance is near the 0.6130 level. It is near the 23.6% Fib retracement level of the downward move from the 0.6275 swing high to 0.6084 low.
The next major resistance is near the 0.6180 level. There is also a key bearish trend line forming with resistance near 0.6180 on the same chart.
The trend line is near the 50% Fib retracement level of the downward move from the 0.6275 swing high to 0.6084 low. A clear move above the 0.6180 resistance might start a steady increase towards the 0.6250 zone. Any more gains might send the pair towards 0.6300.
On the downside, an immediate support is near the 0.608 level. The next major support is near the 0.6050 level, below which there is a risk of a move towards the 0.6000 level.
Looking at GBP/USD, the pair tested the 1.1800 support zone and there are still chances of more downsides in the near term.
Economic Releases
- US Initial Jobless Claims – Forecast 195K, versus 190K previous.
