- 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
|Today last price||0.6403|
|Today Daily Change||0.0016|
|Today Daily Change %||0.25|
|Today daily open||0.6387|
|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|
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
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium
Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high
Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.