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NZDUSD H4 Trading Strategy and Key Zones

NZD/USD Indicators Show Key Reversal Levels

The NZD/USD currency pair, often referred to by its nickname “Kiwi,” is a popular pair in the forex market, representing the exchange rate between the New Zealand Dollar and the US Dollar. Traders and investors follow it closely due to New Zealand’s commodity-based economy and the US Dollar’s status as the world’s reserve currency. Upcoming economic reports from both countries, including New Zealand’s Performance of Manufacturing Index and the US Import Price Index and consumer sentiment from the University of Michigan, will likely influence market movements today.
Fundamentally, traders are paying attention to the US Import Price Index, which could indicate inflationary pressures, and the University of Michigan’s consumer sentiment and inflation expectations, which provide insights into consumer spending and inflation outlooks. A higher-than-expected reading for both reports would be bullish for the USD, potentially pushing NZD/USD downward. However, New Zealand’s PMI, if it shows expansion, could support the Kiwi, creating mixed signals for the pair. Traders should watch these reports as they will directly impact the pair’s short-term direction, especially as inflation data becomes more critical in the context of central bank policies.

H4-NZDUSD-Technical-And-Fundamental_Analysis-on--09-13.2024

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Technically, the NZDUSD H4 chart shows a bullish momentum building, as the pair is moving towards the Ichimoku cloud but still trades below it. The last three candles have been bullish, with the price currently sitting around the 0.382 Fibonacci retracement level. If the price can break above this level, there is potential for it to reach the 0.5 or 0.618 Fibonacci levels. The Williams %R indicator shows that the pair may be overbought in the short term, signaling possible resistance ahead. Traders should watch how the price reacts to the 0.382 Fibonacci level as it will dictate the next move upward or a possible retracement.

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