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NZD/USD Dives To New Yearly Low, Dollar Extends Rally

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Aayush Jindal

Key Highlights

  • NZD/USD declined to a new multi-month low below 0.6100.
  • EUR/USD spiked below the 0.9900 support, and GBP/USD stayed below 1.1620.
  • USD/JPY surged above the 141.50 and 142.00 resistance levels.
  • The Euro Zone GDP could grow 0.6% in Q2 2022 (QoQ).

NZD/USD Technical Analysis

The New Zealand Dollar stayed below the 0.6300 pivot zone against the US Dollar. NZD/USD declined below the 0.6150 and 0.6100 support levels to move further into a bearish zone.

Looking at the 4-hours chart, the pair settled below 0.6100, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bears even pushed the pair towards the 0.6020 level. It seems like the bears are in control and there is a risk of a move towards the 0.6000 support zone. A downside break below the 0.6000 support might spark more losses.

The next major support is near the 0.5950 level, below which the pair could even test the 0.5880 level. If there is a recovery wave, the pair might face resistance near the 0.6085 level.

The first major resistance is near the 0.6100 zone and a connecting bearish trend line on the same chart. A clear move above the 0.6100 level might start a steady recovery. In the stated case, NZD/USD may perhaps rise towards the 0.6150 resistance zone.

Looking at EUR/USD, the pair extended losses below the 0.9920 level. Similarly, GBP/USD is at a risk of more losses below the 1.1500 level.

Economic Releases

  • Euro Zone Gross Domestic Product Q2 2022 (QoQ) - Forecast 0.6%, versus 0.6% previous.
  • Euro Zone Gross Domestic Product Q2 2022 (YoY) - Forecast 3.9%, versus 3.9% previous.
  • BoC Interest Rate Decision – Forecast 3.25%, versus 2.5% previous.
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