(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })(); (function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

NZD/USD Eyes Key Upside Break, Oil Revisits $120

Aayush Jindal

Aayush Jindal

Market Analysis

Key Highlights

  • NZD/USD gained pace and climbed above 0.6500.
  • A major bullish trend line is forming with support near 0.6470 on the 4-hours chart.
  • Crude oil price extended gains and retested the $120 zone.
  • The US ADP Employment could change 300K in May 2022, up from 247K.

 

NZD/USD Technical Analysis

The New Zealand Dollar started a decent increase from the 0.6250 zone against the US Dollar. NZD/USD broke the 0.6350 resistance to move into a positive zone.

Looking at the 4-hours chart, the pair cleared the 0.6400 resistance, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It even surpassed the 0.6500 level and traded as high as 0.6564. Recently, there was a downside correction, but losses were limited below 0.6500. There is also a major bullish trend line forming with support near 0.6470 on the same chart.

If there is a downside break below the trend line, the pair could decline towards the 0.6450 support. The next major support sits near the 0.6400 level and the 100 simple moving average (red, 4-hours).

Any more losses might send NZD/USD towards the 0.6320 support. The next key support is near 0.6250. On the upside, there is a major barrier near 0.6565. A clear move above the 0.6565 zone could set the pace for a larger increase. The next major barrier could be near the 0.6640 level.

Looking at EUR/USD, the pair started a downside correction from the 1.0800 zone. Similarly, GBP/USD retreated lower from the 1.2660 resistance.

Economic Releases

  • US Initial Jobless Claims - Forecast 210K, versus 210K previous.
  • US ADP Employment Change for May 2022 - Forecast 300K, versus 247K previous.