The NZD/USD pair has recorded a steep run after shifting its business above 0.6150 in the Asian session. The Kiwi asset has shifted into a bullish trajectory amid a sell-off in the US Dollar Index (DXY). The USD Index has continued its declining trend to near 101.20 as the Federal Reserve (Fed) is set to announce a pause in the rate-hiking spree after a consecutive 25 basis point (bp) rate hike in May.

The New Zealand Dollar will show immense action after the release of Trade Balance data on Wednesday.

NZD/USD is in a markup phase after a test of the breakout region of the consolidation formed in a range of 0.6125-0.6156 on an hourly scale. The 20-period Exponential Moving Average (EMA) at 0.6158 is providing support to the New Zealand Dollar bulls.

The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, indicating that the upside momentum is active.

Should the asset go for a healthy correction to near the 10-EMA at 0.6165, a bargain buy opportunity will emerge, which will drive the Kiwi asset toward the round-level resistance at 0.6200. A breach of the latter will allow the Kiwi to report a fresh weekly high above April 19 high at 0.6227.

Alternatively, a breakdown of April 20 low at 0.6148 will drag the asset toward April 24 low at 0.6125 followed by the round-level resistance at 0.6100.

Ideally, pair is headed south for five wave drop within (C) which has room even for 0.6000. However, this wave (C) is still part of a higher degree contra-trend movement, so we believe that kiwi will turn bullish this year, but from lower support levels, according to daily count. The potential ending diagonal also suggests that support will be seen at a new 2023 low.

NZDUSD is expected to run for corrective wave c

Apr 25 2023