Kiwi Pair Breaks Key Resistance Level
The NZDUSD currency pair, commonly known as the “Kiwi,” pairs the New Zealand Dollar against the US Dollar, reflecting the economic relationship between New Zealand and the United States. Today, the NZD-USD daily chart technical and fundamental analysis highlights potential volatility driven by key economic events. Upcoming speeches by Federal Reserve officials, Patrick Harker and Raphael Bostic, will closely be watched for insights into future monetary policy direction, potentially affecting USD strength. Additionally, traders will monitor the release of the New York Manufacturing Index and the US Import Price Index, indicators crucial for gauging economic health and inflationary pressures. From New Zealand’s side, data on the Food Price Index (FPI) and Global Dairy Trade (GDT) outcomes may influence the NZD, given their significance to inflation expectations and export income.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the NZD/USD H4 chart, the recent price action shows a strong bullish momentum, breaking the resistance level at 0.58260 convincingly with robust candles, suggesting continuation in the current uptrend. If price action begins correcting downward, potential retracement levels include the previously broken resistance at 0.58260, followed by support levels at 0.57270 and then 0.56624. The Parabolic SAR indicator aligns with this bullish sentiment, displaying dots below the candles, indicating upward momentum. The Relative Strength Index (RSI) suggests a bullish bias but is nearing overbought territory, signaling potential near-term exhaustion and the possibility of a corrective pullback. The Momentum oscillator supports the bullish trend but is starting to flatten, hinting at decreasing bullish momentum and cautioning traders to watch for possible reversals.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
