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NZD/USD Settles Below Key Support, More Losses Ahead?

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Aayush Jindal

Key Highlights

  • NZD/USD is gaining bearish momentum below the 0.6120 support.
  • A major bearish trend line is forming with resistance near 0.6140 on the 4-hour chart.
  • EUR/USD is moving lower below the 1.0920 support level.
  • The USD ISM Services Index could decline from 53.9 to 53.0 in July 2023.

NZD/USD Technical Analysis

The New Zealand Dollar started a fresh decline from the 0.6400 zone against the US Dollar. NZD/USD declined below the 0.6320 and 0.6250 support levels.

Looking at the 4-hour chart, the pair gained bearish momentum after it broke the 0.6120 support. There was a close below the 0.6100, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

The pair is now consolidating near the 0.6065 zone. A downside break and close below the 0.6065 zone could set the pace for a sustained decline.

The next major support is near 0.6000, below which NZD/USD could slide toward the 0.5950 zone. On the upside, the pair is facing resistance near the 0.6100 level.

The first major resistance is near 0.6120. There is also a major bearish trend line forming with resistance near 0.6140 on the same chart. A close above the 0.6740 resistance could push the pair toward 0.6200 or the 100 simple moving average (red, 4 hours). Any more gains could start a fresh increase toward the 0.6250 level.

Looking at EUR/USD, the pair is moving lower and there is a risk of more downsides below the 1.0900 level in the near term.

Economic Releases

  • US ISM Services Index for July 2023 – Forecast 53.0, versus 53.9 previous.
  • US Initial Jobless Claims - Forecast 227K, versus 221K previous.
  • BoE Interest Rate Decision - Forecast 5.25%, versus 5.0% previous.
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