Quotations of the currency pair New Zealand Dollar to US Dollar NZD/USD continue to move as part of growth and a bullish channel. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices have gone up from the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continued growth in the value of the instrument already from current levels. At the time of publication of the Forex forecast, the rate of the New Zealand Dollar to the US Dollar is 0.6480. At the moment, we should expect an attempt to develop a correction and test the support level near the area of 0.6535. Further, as part of the Forex forecast and analytics for tomorrow, the price is expected to break down and an attempt to develop the fall of the currency pair to the area below the level of 0.6225.
NZD/USD Forecast January 27, 2023
An additional signal in favor of a decrease in the NZD/USD currency pair on Forex will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of this scenario will be a rebound from the upper border of the Double Top reversal pattern. Cancellation of the option of falling quotes of the New Zealand Dollar on Forex will be a strong growth and a breakdown of the level of 0.6685. This will indicate a breakdown of the support area. In this case, the pair will continue to develop a decline to the area below the level of 0.6875. It is worth waiting for confirmation of the fall of the NZD/USD currency pair with a breakdown of the support area and closing of quotes below the level of 0.6335, which will indicate a breakdown of the lower border of the “Double Top” reversal pattern and the beginning of the pattern with targets below.
Annual inflation in New Zealand was 7.2%, which is above market expectations of 7.1%, but below the forecast of the Reserve Bank of New Zealand, which expected inflation at 7.5%. These are the highest figures in the last 30 years. Food prices are growing rapidly, now the figure is at the level of 10.7%, in the third quarter this figure was at the level of 8.2%. Consumer inflation rose by 1.4%. Markets now expect that the Reserve Bank of New Zealand will not raise the rate by 75 basis points at once, as it did in November, but rather by only 50 basis points. What can put pressure on the New Zealand Dollar.
NZD/USD Forecast January 27, 2023 suggests an attempt to test the resistance area near the level of 0.6535. Where should we expect the quotes to continue falling to the area below the level of 0.6225. An additional signal in favor of the decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of the fall of the NZD/USD pair will be a strong price increase and a breakdown of the level of 0.6685. In this case, we should expect the pair to continue to rise with a potential target above the level of 0.6875.
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