Analysis of NZD/USD: Exchange Rate Hits Yearly High Today
According to the NZD/USD chart, the exchange rate has reached 0.635 New Zealand dollars per US dollar today, its highest level since December 2023.
As reported by Trading Economics:
On one hand, the "kiwi" strengthened due to China's announcement of an economic stimulus package, as China is New Zealand's largest trading partner.
On the other hand, weaker-than-expected US consumer confidence data (CB Consumer Confidence) released yesterday also supported the pair: actual = 98.7, forecast = 103.9, previous = 105.6.
Today's technical analysis of the NZD/USD chart shows that since late July, the price has formed an upward channel (marked in blue), with the following developments:
Bulls managed to break the 0.630 level;
The 0.626 level shifted from resistance to support (indicated by an arrow);
Since mid-September, the price rise has been most clearly reflected by a steeper upward channel (shown by purple lines);
The RSI indicator on the 4-hour timeframe entered the overbought zone and has turned downwards.
It's worth noting that todays NZD/USD chart indicates the median line is showing signs of resistance, as seen earlier in September.
Given this, the market appears vulnerable to a pullback, and we may witness a retest of the 0.630 level, reinforced by support from the purple lines.
Read more: https://fxopen.com/blog/en/oa-analysis-of-nzd-usd-exchange-rate-hits-yearly-high-today/
Text source: Forex Trading Blog
