NZD/USD Price Analysis: Bears are lurking below 0.6150 ahead of NFP

NZD/USD's resistance between 0.6120 and 0.6150 could lead to a downside extension in failures below the area.
All eyes are on the US NFP event.

Ross J Burland FXStreet

NZD/USD is gliding bid ahead of key US Nonfarm Payroll data tonight while the USD DXY has turned soft ahead of the event putting some wind under the Bird's wings. The following illustrates a corrective bias ahead of the event but bearish overall.

NZD/USD daily charts

The daily chart's inverse head and shoulders are compelling, but the price remains on the front side of the dominant bear trend still and there are bearish under tones while below 0.6270.

In the meanwhile, there are prospects of a fuller test of the dynamic resistance in line with the 200-DMA and neckline of the M-formation.

With that being said, 0.6150 near the 38.2% Fibonacci that meets the dynamic resistance could prove a tough nut to crack.

NZD/USD H1 chart

On the lower time frames, such as the hourly, the 0.6120s could prove to be resilient also and lead to a downside extension in failures below the level.

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.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD stays offered, breaks below 1.1400…again

EUR/USD adds to Tuesday’s slight losses and drops below the 1.1400 yardstick in the latter part of Wednesday’s NA session. The pair’s decline comes in response to the persistent recovery in the US Dollar, which seems to have met extra support following the cautious tone from Fed’s Warsh in his comments at the ECB Forum.

Gold recovers but sellers hold the grip

Gold keeps the bullish performance in place on Wednesday, although is now giving away part of its earlier advance past the $4,100 mark per troy ounce. The precious metal’s marked rebound comes despite the US Dollar’s bid bias, higher US Treasury yields across the curve and positive headlines from the Middle East.

Dogecoin vs Shiba Inu: DOGE and SHIB start July with similar setups

The cryptocurrency market shows subtle signs of rebounding on Wednesday after facing intense headwinds over the past few weeks, largely attributed to geopolitical tensions, macroeconomic uncertainty and risk-averse sentiment. Dogecoin (DOGE) and Shiba Inu (SHIB) are holding above pivotal support levels at $0.0700 and $0.0000040, respectively, suggesting investors are ready to reengage.

Warsh stays on message as inflation remains the Fed's top priority

At the ECB Forum in Sintra, Fed Chair Kevin Warsh largely followed the script, offering little to change the market’s current view on monetary policy.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.