The NZDUSD pair comes under some selling pressure on the first day of a new week and moves further away from a nearly three-month high - levels just above the 0.6200 mark touched on Friday. The pair remains depressed through the early part of the European session and is currently flirting with the daily low, around the 0.6120 region. The US Dollar builds on last week's recovery from its lowest level since August 12 and gains traction for the third successive day, which, in turn, is seen weighing on the NZDUSD pair.

The New Zealand Dollar (NZD) ended the week almost flat after hitting a weekly high of 0.6203. Failure to crack the latter keeps the NZD exposed to selling pressure. Notably, the 0.6200 figure was tested three times, and with the Relative Strength Index (RSI) exiting overbought conditions, aiming slightly lower, a fall toward the 100-day Exponential Moving Average (EMA) at 0.6015 is on the cards.

NZDUSD key support levels lie at 0.6100, followed by the downslope top-trendline of a descending channel around 0.6065, followed by the 100-day EMA at 0.6015. On the flip side, the NZDUSD’s first resistance would be the 0.6200 mark, followed by the August 25 daily high at 0.6251, ahead of the 200-day EMA at 0.6308.

Moving ahead, traders now look forward to the release of the US Existing Home Sales data, due later during the early North American session. This, along with the US bond yields and the broader risk sentiment, will influence the USD and provide some impetus. Nevertheless, the NZDUSD pair remains on track to end in positive territory for the fifth successive week.

NZDUSD has impulsively broken the Trendline

Nov 21 2022