The New Zealand Dollar rose 0.3% to $0.6088 on Friday, trying to recover from its lowest level in three weeks. Prime Minister Chris Hipkins this week signed a cooperation agreement with the country’s largest trading partner, China, during his visit to Beijing. This agreement is aimed at strengthening market exports, expanding e-commerce and green economy, as well as establishing a dialogue on new energy vehicles. However, disappointing Chinese manufacturing activity data in June capped growth as concerns persist over an uneven economic recovery after Beijing lifted all pandemic control measures in December last year.
NZD/USD Weekly Forecast July 3 — 7, 2023
Quotes of the currency pair New Zealand Dollar against the US Dollar NZD/USD complete the trading week as part of a correction near the level of 0.6083. Moving averages indicate the presence of a bearish trend for the pair. Prices have broken through the area between the signal lines down, which indicates pressure from sellers of the currency pair and a potential continuation of the fall from current levels on the market. At the moment, we should expect an attempt to develop a bullish correction of the currency pair on Forex and a test of the resistance area near the level of 0.6145. Then, a rebound down and the continuation of the fall of the currency pair with a potential target below the level of 0.5435.
An additional signal in favor of the fall of the NZD/USD currency pair will be a test of the downtrend line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option of falling quotes of the pair in the current trading week July 3 — 7, 2023 will be a strong growth and a breakdown of the 0.6435 area. This will indicate a breakdown of the resistance area and a continuation of the rise of the NZD/USD pair with a potential target above the level of 0.6695. A confirmation of the fall of the currency pair on Forex will be a breakdown of the support area and closing of quotes below the area of 0.5845, which will indicate a breakdown of the lower bearish channel, and this is a signal to fall on the width of the channel.
NZD/USD Weekly Forecast July 3 — 7, 2023 suggests an attempt to develop a correction and test the resistance level near the 0.6145 area. Further, the continuation of the fall of the NZD/USD pair to the area below the level of 0.5435. An additional signal in favor of the fall will be a test of the trend line on the relative strength index (RSI). Cancellation of the pair’s fall option will be a strong growth and closing of NZD/USD quotes above the level of 0.6435. In this case, we should expect the currency pair to continue to rise with the target above the level of 0.6695.
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