NZD/USD Price Analysis: H&S in action amid risk-off market mood

NZD/USD has gauged intermediate support near 0.6140, however, more downside seems favored amid uncertainty.
Investors should note that core inflation in the US economy has remained extremely persistent.
NZD/USD has formed a Head and Shoulder chart pattern on a two-hour scale, which indicates a prolonged consolidation.

Sagar Dua FXStreet

The NZD/USD pair has found intermediate support near 0.6140 in the European session. The Kiwi asset is expected to show a volatile action as the US Dollar Index (DXY) is looking to conclude its corrective move.

S&P500 futures have posted losses in London, portraying a further decline in the risk appetite of the market participants. The risk of global recession is driving market mood and has trimmed the appeal for risk-sensitive assets.

The US Dollar will remain in action ahead of the release of the Durable Goods Orders data. Investors should note that core inflation in the United States economy has remained extremely persistent due to rising prices for services and durable goods.

NZD/USD has formed a Head and Shoulder chart pattern on a two-hour scale, which indicates a prolonged consolidation. A breakdown of the same confirms a bearish reversal. The neckline of the aforementioned chart pattern is plotted from June 14 low at 0.6142.

The Kiwi asset is struggling to maintain an auction above the 200-period Exponential Moving Average (EMA) at 0.6159, which indicates that the long-term trend is not bullish.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, indicating a non-directional performance.

A downside move below the June 16 low at 0.6116 will expose the asset to June 05 low at 0.6041. A slippage below the latter would expose the asset to psychological support at 0.6000.

Alternatively, a confident break above May 17 high at 0.6261 will drive the Kiwi asset toward May 19 high at 0.6306 followed by May 08 high around 0.6360.

NZD/USD two-hour chart

NZD/USD

Overview
Today last price	0.616
Today Daily Change	0.0042
Today Daily Change %	0.69
Today daily open	0.6118

Trends
Daily SMA20	0.6124
Daily SMA50	0.6173
Daily SMA100	0.6205
Daily SMA200	0.6156

Levels
Previous Daily High	0.6192
Previous Daily Low	0.6116
Previous Weekly High	0.6237
Previous Weekly Low	0.6116
Previous Monthly High	0.6385
Previous Monthly Low	0.5985
Daily Fibonacci 38.2%	0.6145
Daily Fibonacci 61.8%	0.6163
Daily Pivot Point S1	0.6092
Daily Pivot Point S2	0.6067
Daily Pivot Point S3	0.6017
Daily Pivot Point R1	0.6168
Daily Pivot Point R2	0.6217
Daily Pivot Point R3	0.6243

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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