NZD/USD Gains Faced Obstacle, Price of Oil Moves Higher

Key Take-Aways

The resistance level of 0.5800 was not overcome by NZD/USD.

On the 4-hours chart, a significant negative trend line is developing with resistance close to 0.5750.

The price of crude oil began to rise steadily above the $85.00 resistance level.

Technical Analysis of NZD/USD

After experiencing a sharp loss against the US Dollar, the New Zealand Dollar found support close to 0.5565. Above 0.5600, the NZD/USD formed a base and the recovery wave began

On the 4-hours chart, the pair was able to move back above the resistance levels of 0.5620 and 0.5640. Even yet, the price of the pair surged beyond the 23.6% Fibonacci retracement level of the decline from the 0.6161 swing high to 0.5564 low.

The pair, however, was unable to rise over the 0.5800 resistance level. On the same chart, a significant bearish trend line is also developing, with resistance located close to 0.5750.

The trend line and the 0.5750 level act as immediate resistance; if overcome, the pair may test the 100 simple moving average (red, 4-hours).

The pair may go toward the 0.5900 level if there is a clear rise above the 0.5860 level.

Near the 200 simple moving average may be the next significant obstacle (green, 4-hours). An early support for the downside is located close to the 0.5640 level. The level of 0.5600 serves as the primary support.

The pair may move toward the 0.5565 level if the downside breaks below the 0.5600 region. The pair may potentially test the 0.5420 support region below the next significant support, which is located close to the 0.5500 level.

When looking at the price of crude oil, there was a noticeable surge above the $85 mark, and it appears that the bulls are aiming for a move towards $90.

Economic News To Trade Today

  • Forecasted decline in Euro Zone retail sales for August 2022 (YoY) is 1.7%, compared to a prior decline of 0.9%.
  • Forecast for Euro Zone Retail Sales in August 2022 (MoM): -0.4% vs. +0.3% in the prior month.
  • US Initial Jobless Claims: 200K expected, up from 193K in the prior week
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.