Key Highlights
- NZD/USD is attempting a fresh increase above the 0.6000 resistance zone.
- It broke a major bearish trend line with resistance at 0.5990 on the 4-hour chart.
- Gold prices remain elevated ahead of the US CPI release and FOMC meeting minutes.
- The US CPI could increase by 3.4% in March 2024 (YoY).
NZD/USD Technical Analysis
The New Zealand started a recovery wave from the 0.5940 zone against the US Dollar. NZD/USD cleared many hurdles near 0.5990 and 0.6000 to move into a positive zone.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance at 0.5990. There was a move above the 38.2% Fib retracement level of the downward move from the 0.6216 swing high to the 0.5939 low.
The pair even settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour).
On the upside, the pair is facing hurdles near 0.6080. It is close to the 50% Fib retracement level of the downward move from the 0.6216 swing high to the 0.5939 low. A clear move above the 0.6080 resistance could send the pair further higher. In the stated case, NZD/USD could rise toward the 0.6200 level.
Immediate support is near the 0.6050 level. The next major support is at 0.6020 and the 100 simple moving average (red, 4-hour).
If there is a downside break below the 0.6020 support, the pair could decline toward the 0.5950 support. Any more losses might send the pair toward the 0.5920 level in the near term.
Looking at Gold, the price remained stable near $2,350 and there are still chances of more upsides toward the $2,380 level.
Economic Releases
- US Consumer Price Index for March 2024 (MoM) – Forecast +0.3%, versus +0.4% previous.
- US Consumer Price Index for March 2024 (YoY) – Forecast +3.4%, versus +3.2% previous.
- FOMC Meeting Minutes.
