NZD/USD bulls eye a significant correction

NZD/USD bears are lurking below the trendline resistance.
Bulls eye a move into the Fibonacci scale.

Ross J Burland FXStreet

NZD/USD stayed within a tight range of between 0.6025 and 0.6066 and was marginally lower ahead of the Asian open and roll over. There was a pick-up in volatility and the US Dollar was under pressure for the most part of the day.

There were concerns as to whether Congress will pass the Biden/McCarthy US debt ceiling deal. The gatekeeper House of Representatives Rules Committee is due to consider the 99-page bill beginning at 3 p.m. EDT (1900 GMT) on Tuesday, ahead of votes in the Republican-controlled House of Representatives and the Democratic-controlled Senate.

´´Although it is logical that resolving the deal will clear the way for the Federal Reserve to hike (which we think is needed, given recent US data), the fact that we have seen US bond yields fall suggests that markets are less ebullient,´´ analñysts at ANZ Bank explained.

´´Carry remains a focus for the Kiwi but carry “works” best when volatility is low and there isn’t much else going on, so it could be a patience game for carry traders. The NZ data is light until Gross Domestic Product in mid-June, and we may have to wait until then for NZ-specific factors to become drivers,´´ the analysts added.

NZD/USD technical analysis

The bears are in the market and this leaves in-the-money shorts vulnerable to a pullback. A move to test resistances could open risk to the trendline resistance in a significant correction as measured by the Fibonacci scale.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD stays weak near 1.1650 ahead of critical US events

EUR/USD stays in the red near 1.1650 in the European trading hours on Friday. The pair remains undermined by broad US Dollar strength and a cautious market mood. Traders keenly await the US Nonfarm Payrolls data and Supreme Court's ruling on Trump's tariff powers for further direction.

GBP/USD holds lower ground below 1.3450, with eyes on US data

GBP/USD remains subdued for the fourth consecutive day, while trading below 1.3450 in the European session on Friday. Markets remain in a wait-and-see mode before the key US event risks and prefer to hold the US Dollar, which weighs negatively on the pair. The US monthly jobs data and the Supreme Court decision on tariffs are awaited.

Gold flat lines around $4,475; looks to US NFP report for fresh impetus

Gold reverses a modest intraday dip to the $4,453 area, and trades near the top end of its daily range heading into the European session. The upside, however, seems limited as traders might opt to wait for the US Nonfarm Payrolls report later today. The crucial employment details will be looked upon for more cues about the Federal Reserve's rate-cut path.

Nonfarm Payrolls expected to show US labor market remained weak in December

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for December on Friday at 13:30 GMT. Economists expect Nonfarm Payrolls to rise by 60,000 in December following the 64,000 increase recorded in November.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.