NZD/USD Chart Analysis
 

NZD/USD Technical Analysis

The technical analysis of the NZDUSD price chart on 1-hour timeframe shows NZDUSD,H1 has rebounded to upper bound of the trading range under the 200-period moving average MA(200) which is declining. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 0.59242. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 0.58897. After placing the order, the stop loss is to be moved to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
 

Fundamental Analysis of Forex - NZD/USD

New Zealand’s unemployment rate ticked up in Q2. Will the NZDUSD price continue its rebounding?

Statistics New Zealand reported New Zealand unemployment rose in the second quarter: the jobless rate climbed to 5.2% in the June quarter from 5.1% when an increase to 5.3% was expected. The underutilisation rate—a broader measure of spare labor capacity—also climbed to 12.8%, up from 12.4% in March and 11.9% a year earlier. The data indicated that the labor market remains soft, reinforcing expectations that the Reserve Bank of New Zealand may cut rates at its next meeting in August. Markets now price in a 90% chance of 5 basis points cut, with the potential for further easing to a floor of 2.75% later this year or early next. Not as high unemployment as expected in New Zealand is bullish for New Zealand currency and NZDUSD currency pair.

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