NZDUSD Technical Analysis – December-26-2023
In today’s comprehensive NZDUSD technical analysis, we will first scrutinize the price action of the currency pair. Following that, we will meticulously delve into the fundamental analysis pertaining to the trading asset.
NZDUSD Technical analysis
FxNews – The NZDUSD currency pair is currently trading near the upper band of the bullish flag. 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, then 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 would likely extend to the Ichimoku cloud if something breaks the lower band of the bullish channel.
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 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.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.