Key Highlights
- NZD/USD is gaining bearish momentum below the 0.6120 support.
- A major bearish trend line is forming with resistance near 0.6140 on the 4-hour chart.
- EUR/USD is moving lower below the 1.0920 support level.
- The USD ISM Services Index could decline from 53.9 to 53.0 in July 2023.
NZD/USD Technical Analysis
The New Zealand Dollar started a fresh decline from the 0.6400 zone against the US Dollar. NZD/USD declined below the 0.6320 and 0.6250 support levels.
Looking at the 4-hour chart, the pair gained bearish momentum after it broke the 0.6120 support. There was a close below the 0.6100, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair is now consolidating near the 0.6065 zone. A downside break and close below the 0.6065 zone could set the pace for a sustained decline.
The next major support is near 0.6000, below which NZD/USD could slide toward the 0.5950 zone. On the upside, the pair is facing resistance near the 0.6100 level.
The first major resistance is near 0.6120. There is also a major bearish trend line forming with resistance near 0.6140 on the same chart. A close above the 0.6740 resistance could push the pair toward 0.6200 or the 100 simple moving average (red, 4 hours). Any more gains could start a fresh increase toward the 0.6250 level.
Looking at EUR/USD, the pair is moving lower and there is a risk of more downsides below the 1.0900 level in the near term.
Economic Releases
- US ISM Services Index for July 2023 – Forecast 53.0, versus 53.9 previous.
- US Initial Jobless Claims – Forecast 227K, versus 221K previous.
- BoE Interest Rate Decision – Forecast 5.25%, versus 5.0% previous.
