NZD/USD Price Analysis: Advances towards 0.6200 after a consolidation breakout
|- NZD/USD is struggling to shore above 0.6180, however, the upside seems favored.
- US Durable Goods Orders data is seen expanding by 0.8% vs. a contraction of 1.0%.
- NZD/USD is in a markup phase after a test of the breakout region of the consolidation.
The NZD/USD pair has recorded a steep run after shifting its business above 0.6150 in the Asian session. The Kiwi asset has shifted into a bullish trajectory amid a sell-off in the US Dollar Index (DXY). The USD Index has continued its declining trend to near 101.20 as the Federal Reserve (Fed) is set to announce a pause in the rate-hiking spree after a consecutive 25 basis point (bp) rate hike in May.
The USD Index is expected to remain in action ahead of the United States Durable Goods Orders data, which will release on Wednesday. For March, the Durable Goods Orders data is seen expanding by 0.8% vs. a contraction of 1.0%. Upbeat economic data will indicate a recovery in forward demand.
The New Zealand Dollar will show immense action after the release of Trade Balance data on Wednesday.
NZD/USD is in a markup phase after a test of the breakout region of the consolidation formed in a range of 0.6125-0.6156 on an hourly scale. The 20-period Exponential Moving Average (EMA) at 0.6158 is providing support to the New Zealand Dollar bulls.
The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, indicating that the upside momentum is active.
Should the asset go for a healthy correction to near the 10-EMA at 0.6165, a bargain buy opportunity will emerge, which will drive the Kiwi asset toward the round-level resistance at 0.6200. A breach of the latter will allow the Kiwi to report a fresh weekly high above April 19 high at 0.6227.
Alternatively, a breakdown of April 20 low at 0.6148 will drag the asset toward April 24 low at 0.6125 followed by the round-level resistance at 0.6100.
NZD/USD hourly chart
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