Key Highlights
- NZD/USD climbed higher above the 0.6150 resistance.
- A major bullish trend line is forming with support near 0.6175 on the 4-hour chart.
- AUD/USD is facing a major hurdle near 0.6710 and 0.6745.
- The US ADP employment could change by 228K in June 2023, down from 278K.
NZD/USD Technical Analysis
The New Zealand Dollar found support near 0.6050 and started a fresh increase against the US Dollar. NZD/USD climbed above the 0.6100 and 0.6120 resistance levels.
Looking at the 4-hour chart, the pair climbed above the 0.6150 resistance zone, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
The pair even spiked above the 0.6200 level. A high is formed near 0.6212 and the pair is now consolidating gains. There was a minor decline below 0.6200. The pair dipped below the 23.6% Fib retracement level of the upward move from the 0.6141 swing low to the 0.6212 high.
Immediate support is near the 0.6175 level. There is also a major bullish trend line forming with support near 0.6175 on the same chart.
The next major support is near the 0.6160 level or the 76.4% Fib retracement level of the upward move from the 0.6141 swing low to the 0.6212 high. If there is a downside break below the 0.6160 support, the pair could decline toward the 100 simple moving average (red, 4 hours).
On the upside, the first major resistance is near 0.6210. The next major resistance is near 0.6240. If there is a move above the 0.6240 resistance, the pair could rise toward 0.6300. Any more gains might send NZD/USD toward the 0.6350 level.
Looking at AUD/USD, the pair started an upside correction but it is still well below the key resistance at 0.6745.
Economic Releases
- US ADP Employment Change for June 2023 – Forecast 228K, versus 278K previous.
- US Initial Jobless Claims – Forecast 245K, versus 239K previous.
- US ISM Services Index for June 2023 – Forecast 51.0, versus 50.3 previous.
