NZD/USD Eyes Key Upside Break, Oil Revisits $120
- 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.
- US Initial Jobless Claims - Forecast 210K, versus 210K previous.
- US ADP Employment Change for May 2022 - Forecast 300K, versus 247K previous.