#NZDUSD Analysis: Trend Higher Now Touching Critical Resistance Level (5 June 2024)

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The NZD/USD has had another solid spurt of upwards momentum develop in the past half day and sustained values near important mid-term resistance marks.

  • The NZD/USD stumbled in early trading yesterday and touched the 0.61560 vicinity, but the move lower actually did not test Monday’s lows.
  • And importantly the support level touched yesterday remained within sight of Friday’s highs. After touching yesterday’s low, the NZD/USD actually began to generate buying momentum.
  • Economic data from the U.S continues to come in below expectations as signs appear to be growing the American economy is slowing.

As of this writing the NZD/USD is near the 0.61818 ratio and this is noteworthy because the currency pair is within sight of yesterday’s highs which were achieved before the downturn. Support and resistance levels short-term are playing the usual cat and mouse game of give and take, but traders who look at a week’s, one month and even a three month chart can see a verifiable trend upwards that has emerged.

Improved Outlook for the NZD/USD and Market Correlation

Yes, on the 19th of April the NZD/USD was near the 0.58565 mark, but short-term traders looking to interpret behavioral sentiment will see the value of the currency pair is now within sight of prices last seen in the second week of March. Meaning even though there was a wicked downturn, the NZD/USD has now returned to a price level which is more optimistically inclined likely due to the notion that financial institutions believe the U.S Federal Reserve is really going to have sound dovish next week on the 12th of June. The broad Forex market and major currency pairs have shown a belief USD centric weakness is expected.

There are absolutely no guarantees, but recent short-term trading is showing signs of stronger support levels. The bullish trading in the NZD/US is still below the 0.62000 level which is likely a target in the minds of some speculators. And the NZD/USD will need more impetus to drive values upwards. Today Services PMI data will come from the States and the data is expected to meet last month’s outcome and be slightly stronger per the reports that will be published. But on this Friday the U.S will issue its Non-Farm Employment Change numbers and Average Hourly Earnings. The combination of these reports will create volatility in the NZD/USD.

Push Higher and Possibly Solid Walls Ahead for NZD/USD

As the NZD/USD challenges higher ratios resistance levels will have to be watched. While sentiment is certainly turning bullish another dose of negative economic news via the jobs reports will likely be needed to create momentum higher that can break critical resistance levels upwards.

  • The U.S Federal Reserve is also waiting in the shadows and will deliver their FOMC rhetoric on the 12th of June.
  • Until then choppiness will prevail in the NZD/USD as positions are wagered on, but bullish traders may continue to believe additional upside is the biggest potential.

NZD/USD Short Term Outlook:

Current Resistance: 0.61840

Current Support: 0.61750

High Target: 0.61940

Low Target: 0.61670


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