On Friday, the New Zealand Dollar NZD/USD advanced and traded around $0.6261, holding its highest level in three weeks. This was driven by a weaker US dollar as the Federal Reserve refrained from raising rates earlier in the week, while other major central banks preferred to continue tightening monetary policy. The New Zealand Dollar continues to show its second consecutive week of growth, as there are signs that employment in the country remains at a high level, which softens the impact of the recession on the country’s economy. Data released on Thursday showed the country’s economy shrinking by 0.1% in the first quarter of 2023, officially leading to a technical recession. However, the data is significantly more favorable than the revised 0.7% drop in the previous period as the Wellington government is actively working to rebuild the northern part of the country after Cyclone Gabriel and other severe weather events earlier this year.
NZD/USD Weekly Forecast June 19 — 23, 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 0.6227. Moving averages indicate the presence of a bearish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from the sellers of the currency pair and a potential continuation of the fall from the 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 0.6265. Then, a rebound down and the continuation of the fall of the currency pair with a potential target below the level of 0.5575.
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 June 19 — 23, 2023 will be a strong growth and a breakdown of the 0.6465 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 0.6745. The fall of the currency pair on Forex will be confirmed by a breakdown of the support area and closing of quotes below the 0.5865 area, which will indicate a breakdown of the lower border of the bullish correction channel.
NZD/USD Weekly Forecast June 19 — 23, 2023 suggests an attempt to develop a correction and test the resistance level near the 0.6265 area. Further, the continuation of the fall of the NZD/USD pair to the area below the level of 0.5575. 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 0.6465. In this case, we should expect the currency pair to continue to rise with the target above the level of 0.6745.
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