NZDUSD Technical Analysis / Forex Technical Analysis

NZDUSD Technical Analysis – Closer Look to Kiwi Climb

In today’s comprehensive NZDUSD technical analysis, we will scrutinize the currency pair’s price action and then meticulously delve into the fundamental analysis of the trading asset.

NZDUSD Technical Analysis – Closer Look to Kiwi Climb

FxNews – The NZDUSD currency pair trades near the bullish flag’s upper band. Interestingly, the Awesome Oscillator indicates a divergence signal on the NZDUSD 4-hour chart, while the RSI indicator has fluctuated between the 50 and 80 levels since mid-September 2023. Based on this data, the currency pair appears likely to enter a consolidation phase.

If this technical analysis proves accurate, the pair’s initial target would be the 23.6% Fibonacci support. Furthermore, the lower line of the bullish flag underpins the bullish wave.

The consolidation phase will likely extend to the Ichimoku cloud if something breaks the lower band of the bullish channel.

NZDUSD Technical Analysis – Closer Look to Kiwi Climb

NZDUSD Fundamental Analysis

Bloomberg—The New Zealand dollar climbed past $0.63, reaching a five-month high. This surge comes as recent US economic data suggests possible Federal Reserve rate cuts next year. The higher commodity prices are also fueled the Nea Zealand’s dollar. These increases are due to supply issues from the Red Sea attacks and the anticipation of lower interest rates, boosting demand.

In New Zealand, the central bank chief noted unexpected slumps in growth, hinting at a sooner cash rate cut. The market now anticipates an RBNZ rate reduction by May next year. Last month, the RBNZ maintained the cash rate at 5.5% but hinted at a possible hike if inflation remains high.