NZD/USD forex pair eyes critical 0.6050 benchmark
The NZD/USD forex pair has jolted the crucial benchmark of 0.6000, eyeing the 0.6050 mark.
Should it cross over this benchmark, we can anticipate an upward trend towards the 14-day Exponential Moving Average (EMA) and a potential hit on the 23.6% Fibonacci retracement level.
It’s a big move – one that indicates we could be looking at a bullish market trend for the NZD/USD forex pair.
Support for this pair is around 0.5950, with additional backing anticipated at 0.5900.
Despite a predominately declining trend across the past three trading sessions, it’s the USD that has been struggling, impacted by the dovish stance of the Federal Reserve regarding the trajectory of the interest rate.
This sent market sentiment down a spiral and led to whispers of potential interest rate cuts as early as June.
As fear of these potential cuts grows, investors are playing it cool and going for perceived safety in this unpredictable climate – a move that’s backing the USD and influencing the downward bias in the NZD/USD duo.
Increased caution could be beneficial – especially ahead of the Federal Reserve’s next policy meeting, which might stabilize things a little.
The 0.6050 level is proving a significant challenge for the NZD/USD pair.
Nonetheless, experts think that if the pair supersede this mark, the arena of 0.6076 – the 14-day EMA, and the 23.6% Fibonacci retracement level at 0.6086 could provide new territory to conquer.
However, this forward move relies heavily on the pair surpassing the 0.6050 hurdle.
Signs aren’t particularly positive now, with the Moving Average Convergence Divergence (MACD) analysis indicating a continued downtrend for the NZD/USD.
market volatility for the NZD/USD pair is also expected to rise, fueled by an expanding pattern seen in the Bollinger Bands.
The current view?
NZD/USD pair nearing critical 0.6050 mark
The downtrend may persist, forcing investors into potential selling positions until market recovery signs get evident.
Investing in Open Markets is a risky business with the potential for partial or total investment loss and increased emotional stress.
If you’re involved actively, be aware of the risk – protect yourself where you can, and be prepared for potential losses or expenses.