- The NZD/USD is consolidated within a symmetrical triangle in the 4 -hour graph, reflecting short -term indecision.
- An ascending wedge pattern in the daily chart indicates a possible bearish rupture below 0.6038.
- Kiwi proves a critical psychological support at 0.6050.
The New Zealand dollar (NZD) is weakening against the US dollar (USD) on Friday, while market participants weigh short -term resistance against a weakening bullish structure.
At the time of writing, the NZD/USD negotiates around 0.6050, retreating the resistance level of 0.6120 after not being able to keep the maximums recent.
The 4 -hour NZD/USD chart shows a symmetric triangle pattern formed by a lower and higher series of lowest and minimum maximums, with the price action converging in a restricted range.
This pattern typically indicates indecision in the market, without bulls or bears having total control, often preceding a break.
In this case, the triangle is forming just below the Fibonacci recoil level of 78.6% of the June minimum movement to the maximum of July. This level is aligned with the psychological resistance of 0.6070.
The dynamic support is found in the SMA of 100 periods of 0.6038.
4 hours of NZD/USD
In the daily chart, the NZD/USD continues to negotiate within an ascending wedge formation, characterized by convergent trend lines in ascending pending. This pattern typically indicates a possible bearish reversal, especially when formed near key resistance areas.
NZD/USD Diario Graph
The relative force index (RSI) is currently in 54, indicating a slight bullish impulse but without conviction. This is aligned with the 4 -hour graph, where a symmetric triangle is being formed just below the same resistance zone, suggesting a short -term consolidation within a broader and more potentially weakening upward trend.
A break down below the wedge support in the daily chart, particularly below the 61.8% of the fall of the fall from September to April about 0.6038, would add weight to the bassist risks. In contrast, a rupture above July 0.6120 could invalidate the pattern and point out a continuation towards 0.6379 (the Fibonacci level of 78.6% of the long -term movement).
New Zealand dollar – Frequently Questions
The New Zealand dollar (NZD), also known as Kiwi, is a well -known currency among investors. Its value is largely determined by the health of the neozyous economy and the policy of the country’s central bank. However, there are some peculiarities that can also make the NZD move. The evolution of the Chinese economy tends to move Kiwi because China is the largest commercial partner in New Zealand. The bad news for the Chinese economy is probably translated into less neozyous exports to the country, which will affect the economy and, therefore, its currency. Another factor that moves the NZD is the prices of dairy products, since the dairy industry is the main export of New Zealand. The high prices of dairy products boost export income, contributing positively to the economy and, therefore, to the NZD.
The New Zealand Reserve Bank (RBNZ) aspires to reach and maintain an inflation rate between 1% and 3% in the medium term, with the aim of keeping it near the midpoint of 2%. To do this, the Bank sets an adequate level of interest rates. When inflation is too high, RBNZ rises interest rates to cool the economy, but the measure will also raise bond performance, increasing the attractiveness of investors to invest in the country and thus boosting the NZD. On the contrary, lower interest rates tend to weaken the NZD. The differential type of types, or how they are or is expected to be the types in New Zealand compared to those set by the Federal Reserve of the US, can also play a key role in the NZD/USD movement.
The publication of macroeconomic data in New Zealand is key to evaluating the status of the economy and can influence the valuation of the New Zealand dollar (NZD). A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and can encourage the New Zealand reserve bank to increase interest rates, if this economic strength is accompanied by high inflation. On the contrary, if the economic data is weak, the NZD is likely to depreciate.
The New Zealand dollar (NZD) tends to strengthen during periods of appetite for risk, or when investors perceive that the general market risks are low and are optimistic about growth. This usually translates into more favorable perspectives for raw materials and the so -called “raw material currencies”, such as Kiwi. On the contrary, the NZD tends to weaken in times of turbulence in markets or economic uncertainty, since investors tend to sell the most risky assets and flee the most stable shelters.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
