NZD/USD Price Analysis: Needs a breakout of inverted H&S for a fresh upside


Share:
  • A bullish reversal seems likely on an Inverted H&S formation on the daily chart.
  • The 20-and 50-EMAs have resumed their upside journey which adds to the upside filters.
  • A shift into the bullish range of 60.00-80.00 by the RSI (14) will strengthen the New Zealand Dollar.

The NZD/USD pair is facing hurdles in surpassing the immediate resistance of 0.6400 in the Tokyo session. The Kiwi asset is expected to extend its rally to near the critical resistance of 0.615 amid optimism in market sentiment.

An improvement in the risk appetite of the market participants is further strengthening the S&P500 futures despite a four-day winning streak. Meanwhile, the US Dollar Index (DXY) is on the verge of testing a seven-month low around 101.60.

On a daily scale, NZD/USD has formed an Inverted Head and Shoulder chart pattern that indicates a bullish reversal, which is expected to strengthen the New Zealand Dollar ahead. The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6352 and 0.6342 respectively have resumed their upside journey, which adds to the upside filters.

The Relative Strength Index (RSI) (14) is aiming to shift into the bullish range of 60.00-80.00, which indicates that the upside momentum is active.

For an upside move, the kiwi asset needs to surpass the previous week’s high at 0.6418, which will drive the major towards the psychological resistance at 0.6500 followed by June 6 high at 0.6538.

On the contrary, a slippage below January 12 low at 0.6314 will provide strength to the US Dollar, which will drag the asst toward December 22 low at 0.630. A slippage below the latter will expose the asst for more downside towards January 6 low at 0.6190.

NZD/USD daily chart

NZD/USD

Overview
Today last price 0.6403
Today Daily Change 0.0016
Today Daily Change % 0.25
Today daily open 0.6387
 
Trends
Daily SMA20 0.6323
Daily SMA50 0.6267
Daily SMA100 0.6049
Daily SMA200 0.6211
 
Levels
Previous Daily High 0.6417
Previous Daily Low 0.6335
Previous Weekly High 0.6418
Previous Weekly Low 0.6314
Previous Monthly High 0.6514
Previous Monthly Low 0.623
Daily Fibonacci 38.2% 0.6366
Daily Fibonacci 61.8% 0.6385
Daily Pivot Point S1 0.6342
Daily Pivot Point S2 0.6298
Daily Pivot Point S3 0.6261
Daily Pivot Point R1 0.6424
Daily Pivot Point R2 0.6461
Daily Pivot Point R3 0.6505

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD holds positive momentum around 0.6565

AUD/USD holds positive momentum around 0.6565

AUD/USD fails to preserve its modest intraday gains amid the emergence of some USD buying. The Fed’s hawkish outlook supports elevated US bond yields and is seen underpinning the buck. A minor pullback in the equity markets further drives flows away from the risk-sensitive Aussie.

AUD/USD News

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

Gold loses ground below $2,040, US GDP data eyed

Gold loses ground below $2,040, US GDP data eyed

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol Price Prediction: NEAR pumps 10% as investors envision another buy opportunity here

Near Protocol (NEAR) price is trading with a bullish bias, with a sustained series of higher highs since the last week of January. With investors groping for discounted entry points, NEAR could correct before the next leg up.

Read more

Week Ahead: What are markets watching this week?

Week Ahead: What are markets watching this week?

Following a thin economic docket last week, the final week of February will see a pick-up in data, particularly out of the US. All in all, it will be a busy week for the markets.

Read more

Forex MAJORS

Cryptocurrencies

Signatures