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Fundamental and Technical Analysis of NZDUSD

Analyzing NZDUSD’s Bollinger Bands and Fibonacci Insights

The NZDUSD forex pair, often referred to as the “Kiwi,” represents the trading relationship between the New Zealand Dollar (NZD) and the US Dollar (USD). This pair is popular among traders due to its liquidity and the interest rate differentials between New Zealand and the United States. Today, traders should watch the BusinessNZ Manufacturing Index for NZD and several high-impact data releases for USD, including Core PPI, PPI, and Prelim UoM Consumer Sentiment. Fundamentally, the NZDUSD pair faces mixed impacts. The BusinessNZ Manufacturing Index is expected to show slight movement with low impact, while the USD could see significant fluctuations due to high-impact data releases. The Core PPI (forecasted at 0.2%) and PPI (forecasted at 0.1%) releases will provide insights into producer inflation, which is a leading indicator of consumer inflation. Higher-than-expected figures are bullish for USD. Additionally, the Prelim UoM Consumer Sentiment, forecasted at 68.5, will reflect consumer confidence, a key driver of economic activity. Positive results here will further support the USD, potentially leading to downward pressure on the NZDUSD pair.

H4-NZDUSD-Technical-and-Fundamental-Analysis-on-12-07-2024

   Chart Notes: 

  • Chart time-zone is UTC (+03:00)
  • Candles’ time-frame is 4h.

Technically, the NZDUSD H4 chart shows the price moving from the lower Bollinger Band towards the middle band, breaking above briefly before dropping back below the middle band with three consecutive bearish candles. The price is currently in the lower half of the bands but close to the middle band, indicating a potential range-bound scenario or further downside. The MACD indicator shows bearish momentum, which supports the recent bearish candles. Fibonacci retracement levels highlight key support and resistance zones, with the 0.382 level acting as immediate resistance around 0.60820.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.