NZD/USD Price Analysis: Volatility squeezes as focus shifts to US GDP


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  • NZD/USD is displaying back-and-forth action ahead of US GDP data.
  • The USD Index is aiming to build a cushion around 101.20 despite the risk-on market mood.
  • The Ascending Triangle formation is indicating a squeeze in volatility.

The NZD/USD pair is continuously facing hurdles in recapturing the psychological resistance of 0.6500 in the early European session. The Kiwi asset is expected to remain on the tenterhooks as investors are awaiting the release of the United States Gross Domestic Product (GDP) data.

The US Dollar Index (DXY) is aiming to build a cushion around 101.20 as anxiety among investors is escalating regarding the US GDP, core Personal Consumption Expenditure (PCE), and Durable Goods Orders data. Meanwhile, positive market sentiment is solidifying further as the S&P500 futures have extended their morning gains.

NZD/USD is displaying topsy-turvy action in an Ascending Triangle chart pattern that indicates volatility contraction on an hourly chart. The New Zealand Dollar has sensed demand after dropping to near the upward-sloping trendline plotted from January 19 low at 0.6365 while the horizontal resistance is placed from January 18 high at 0.6531.

The 20-EMA at 0.6483 is overlapping the Kiwi asset, which indicates consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates an absence of a potential trigger for a decisive move.

For an upside move, the asset needs to surpass Wednesday’s high at 0.6530, which will drive the asset toward June 3 high at 0.6576. A breach of the latter will expose the asset to the round-level resistance at 0.6600.

On the flip side, a breakdown below January 16 high at 0.6426 will drag the Kiwi asset toward January 17 low at 0.6366 followed by January 12 low around 0.6300.

NZD/USD hourly chart

NZD/USD

Overview
Today last price 0.6486
Today Daily Change 0.0002
Today Daily Change % 0.03
Today daily open 0.6484
 
Trends
Daily SMA20 0.6381
Daily SMA50 0.6332
Daily SMA100 0.6077
Daily SMA200 0.6197
 
Levels
Previous Daily High 0.6526
Previous Daily Low 0.645
Previous Weekly High 0.6531
Previous Weekly Low 0.6361
Previous Monthly High 0.6514
Previous Monthly Low 0.623
Daily Fibonacci 38.2% 0.6479
Daily Fibonacci 61.8% 0.6497
Daily Pivot Point S1 0.6447
Daily Pivot Point S2 0.641
Daily Pivot Point S3 0.637
Daily Pivot Point R1 0.6523
Daily Pivot Point R2 0.6563
Daily Pivot Point R3 0.66

 

 

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