NZD/USD Accumulate Gains and Broke Resistance, US Dollar on Risk Exposure

Key Take-Aways

  • NZD/USD increased in speed after breaking over the 0.6320 resistance area.
  • On the 4-hours chart, a connecting bullish trend line is developing with support close to 0.6300.
  • Over the 1.0280 resistance level, the EUR/USD price rocketed higher.
  • The 0.7050 resistance level was breached by the AUD/USD pair.

Technical Analysis of NZD/USD

In relation to the US Dollar, the New Zealand Dollar established a base above the 0.6250 mark. NZD/USD continued to go upward and broke over the 0.6300 resistance.

On the 4-hour chart, it can be seen that the pair managed to overcome the 0.6350 barrier. Additionally, the 200 simple moving average, the 100 simple moving average (red, 4-hours), and the 0.6350 level were all closed above.

Even higher, the pair reached a high of 0.6434 and soared above 0.6400. It is currently reversing gains and trading close to 0.6385. The first significant support for the downside is close to the 0.6380 level.

Near the 0.6320 level, the primary support is currently building. On the same chart, a connecting bullish trend line is also developing, with support located close to 0.6300. Losses can increase if the downside breaks through the 0.6300 support level.

The 200 simple moving average and 0.6230 are the closest significant supports. Any more losses might push the pair closer to the 0.6200 level.

The pair is encountering resistance near the level of 0.6420 on the upside. The pair could move higher if it can clear the next significant obstacle, which is close to the 0.6440 mark. In the aforementioned scenario, the pair may advance in the near term toward the 0.6500 resistance region.

Looking at the EUR/USD pair, it appears that further gains in the ensuing sessions are possible as the pair broke through the 1.0280 barrier.

Economic News to Trade Today

  • US Initial Jobless Claims: 263K expected, up from 260K in the previous period.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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