NZD/USD Stays Elevated As Market Awaits US Consumer Price Index Report
- Above the 0.5800 resistance, the NZD/USD pair began to rise once more.
- On the 4-hours chart, a significant rising channel is developing with support close to 0.5835.
- The price of gold could increase over $1,715 and $1,720.
- In October 2022 (YoY), the US CPI may rise by 8%, down from 8.2%.
Technical Analysis of NZD/USD
In relation to the US Dollar, the New Zealand Dollar established a base above the 0.5600 mark. Above the resistance levels of 0.5700 and 0.5750, NZD/USD started to rise again.
On the 4-hours chart, the pair is still strongly bid and has risen over the 0.5800 mark. Even the 100 simple moving average (red, 4-hours) and the 200 simple moving average, which together make up the 0.5850 level, were broken above (green, 4-hours).
The pair was lifted above the 0.5900 mark by the bulls. Although it reached a high of 0.5999, it was unable to move over the 0.6000 resistance level. Currently, the pair is correcting downward below 0.5950.
A decline was seen from the 0.5999 high to the 38.2% Fib retracement level of the upward movement from the 0.5740 swing low. The 0.5870 level serves as a temporary support.
The 0.5870 level is very close to the 50% Fib retracement level of the upward movement from the 0.5740 swing low to 0.5999 high. Near the 0.5835 zone is the next significant support. On the same chart, a significant rising channel is also developing with support close to 0.5835.
The 100 simple moving average or the 0.5800 zone serves as the primary support (red, 4-hours). Selling pressure can become more intense if the 0.5800 level is closed below. In the described scenario, it might fall toward the 0.5720 support.
On the plus side, the pair might run into obstacles near the 0.5940 level. Near 0.6000 may serve as the next significant obstacle. Any further gains would accelerate a move in the direction of the 0.6050 mark, over which it might potentially target 0.6120.
Looking at the price of gold, there was a significant upward movement above $1,680, and it appears that the price may potentially rise above $1,720.
Economic News To Trade Today
- Forecast for the US Consumer Price Index for October 2022 (YoY) is +8.0%, up from the previous +8.2%.
- Forecast for the US Consumer Price Index Excluding Food and Energy for October 2022 is +6.5%, up from the previous +6.6%.
- US Initial Jobless Claims: 220K expected, up from 217K in the previous period.
Author: Amogo Solomon
- USD/JPY Exposes To Risk of Further Downside, Next Is the Purchasing Manager’s Index
- The AUD/USD Will Likely Keep Gaining, The US Interest Rate Raised To 5.00%
- Gold Price Holding Gains, US Inflation Data Declined
- Non-Farm Payroll: The US Job Market Is Recovering Massively, Will The Dollar Index Gain Continue?
- The Price of Bitcoin Will Likely Rise if It Holds Above The $23,000 Zone