Aayush Jindal
Key Highlights
- NZD/USD is attempting to recover from 0.5735.
- A major bearish trend line is forming with resistance near 0.5830 on the 4-hour chart.
- EUR/USD extended losses below 1.1640 and might test 1.1580.
- Gold extended gains and rallied to a new record high above $4,020.
NZD/USD Technical Analysis
The New Zealand Dollar dived below 0.5850 against the US Dollar before the bulls appeared. NZD/USD tested 0.5735 and recently started a minor recovery.
Looking at the 4-hour chart, the pair recovered above the 23.6% Fib retracement level of the recent decline from the 0.5844 swing high to the 0.5736 low. However, the pair is still well below the 0.5850 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
Besides, there is a major bearish trend line forming with resistance near 0.5830. To start a decent increase, NZD/USD must settle above the trend line and 0.5850.
The main hurdle could be near 0.5870 and the 200 simple moving average (green, 4-hour). A close above 0.5870 could start a steady increase. If not, the pair could decline again.
On the downside, there is key support at 0.5750. The next area of interest might be 0.5730. The main support could be 0.5680. Any more losses might increase selling pressure and send the pair toward 0.5620.
Looking at Gold, the bulls remained in full control as they were able to pump the price to new highs above $4,000 and $4,020.
Upcoming Key Economic Events:
- US Initial Jobless Claims - Forecast 227K, versus 218K previous.
- Fed's Chair Powell speech.
