Where could the NZDUSD go?
The NZDUSD climbed steadily to the upside toward the end of the trading week, with the price reaching a high of 0.6130.
Currently, the price has retraced and is consolidating below the 0.61 price level.
If the DXY continues to weaken, the NZDUSD could continue to climb higher toward the next key resistance level of 0.6250.
Alternatively, if the DXY stages a sustained recovery in strength, the NZDUSD could reverse back down toward the 0.5858 support level. This is also following recent news release that the RBNZ could be looking to hike rates by only 50bps instead of 75bps at the upcoming meeting.
However, a trend-following scenario would be more likely for now.
Currently, the price has retraced and is consolidating below the 0.61 price level.
If the DXY continues to weaken, the NZDUSD could continue to climb higher toward the next key resistance level of 0.6250.
Alternatively, if the DXY stages a sustained recovery in strength, the NZDUSD could reverse back down toward the 0.5858 support level. This is also following recent news release that the RBNZ could be looking to hike rates by only 50bps instead of 75bps at the upcoming meeting.
However, a trend-following scenario would be more likely for now.
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