On Friday, the New Zealand dollar traded near 0.6088, staying close to its highest level in over two weeks. Traders pondered the decisions of several central banks to raise interest rates last week. The Reserve Bank of Australia and the Bank of Canada surprised the markets by raising interest rates by 25 basis points, respectively, after a pause in the previous meeting. Investors are also looking ahead to the release of New Zealand’s first-quarter GDP growth, which is forecast to be marginal after contracting 0.6% in the previous quarter due to adverse weather earlier in the year. Over the week, the New Zealand Dollar strengthened as the US dollar continues to fall and investors suggest that the US Federal Reserve will suspend its rate hike policy next week due to a marked slowdown in the services sector.
NZD/USD Weekly Forecast June 12 — 16, 2023
Quotes of the currency pair New Zealand Dollar against US Dollar NZD/USD complete the trading week as part of a correction near the level of 0.6095. 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 test the resistance area near the level of 0.6195. Then, a rebound down and the continuation of the fall of the currency pair with a potential target below the level of 0.5525.
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 of June 12 — 16, 2023 will be a strong growth and a breakdown of the 0.6425 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. The fall of the currency pair on Forex will be confirmed by a breakdown of the support area and closing of quotes below the area of 0.5875.
NZD/USD Weekly Forecast June 12 — 16, 2023 suggests an attempt to develop a correction and test the resistance level near the 0.6195 area. Further, the continuation of the fall of the NZD/USD pair to the area below the level of 0.5525. 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 0.6425. 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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