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.

Sagar Dua FXStreet

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

NZD/USD

Overview
Today last price	0.6177
Today Daily Change	0.0010
Today Daily Change %	0.16
Today daily open	0.6167

Trends
Daily SMA20	0.6232
Daily SMA50	0.622
Daily SMA100	0.6296
Daily SMA200	0.6163

Levels
Previous Daily High	0.617
Previous Daily Low	0.6125
Previous Weekly High	0.6227
Previous Weekly Low	0.6126
Previous Monthly High	0.6298
Previous Monthly Low	0.6084
Daily Fibonacci 38.2%	0.6153
Daily Fibonacci 61.8%	0.6142
Daily Pivot Point S1	0.6138
Daily Pivot Point S2	0.6109
Daily Pivot Point S3	0.6093
Daily Pivot Point R1	0.6183
Daily Pivot Point R2	0.6199
Daily Pivot Point R3	0.6228

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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