Traders monitoring the dynamics of the New Zealand and U.S. dollars are focusing on the publication of important macro statistics from the U.S. and New Zealand at 12:30 and 22:45 (GMT).
From a technical point of view, NZD/USD is developing a downward correction towards the important short-term support level of 0.6281 (200 EMA on the 1-hour chart).
A break below this level will strengthen the negative momentum, causing the pair to decline towards the key medium-term support level of 0.6230 (200 EMA on the daily chart). In case of further decline and a break below the important medium-term support levels of 0.6210 (144 EMA on the daily chart) and 0.6200 (50 EMA on the daily chart), NZD/USD will move deeper into the downward channel on the weekly chart towards its lower boundary, passing through the 0.5900 mark (local support level), with intermediate targets at the support levels of 0.6100, 0.6060, and 0.5975 (23.6% Fibonacci level in the downward wave from 0.7465 in February 2021 to 0.5510 reached in October 2022).
In an alternative scenario, a break above the upper boundary of the recently established range between 0.6336 (200 EMA on the 15-minute chart) and 0.6281 may determine the upward direction of NZD/USD towards the upper boundary of the upward channel on the daily chart and the 0.6411 mark (recent local high).
With more favorable developments for NZD, the NZD/USD pair may rise towards key resistance levels at 0.6460 (144 EMA on the weekly chart) and 0.6540 (200 EMA on the weekly chart), which separate the long-term bullish trend from the bearish one. A breakout above these levels will lead NZD/USD into the long-term bullish market zone, and a breakout above the 0.6700 resistance level (200 EMA on the monthly chart) will bring it into the global bullish market zone.
Support levels: 0.6281, 0.6258, 0.6230, 0.6210, 0.6200, 0.6110, 0.6090, 0.6060, 0.6000, 0.5990, 0.5975, 0.5900
Resistance levels: 0.6310, 0.6336, 0.6390, 0.6411, 0.6460, 0.6488, 0.6500, 0.6540
