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NZD / USD Market Analysis: Finds Acceptance Above 200-EMA Despite USD Index Losses
As the USD Index has continued to fall, NZD/USD has prolonged its recovery move above 0.6230. Fed Bostic's bullish remarks have not helped the US dollar. The Kiwi asset has climbed above the 200-period EMA, suggesting that the overall direction is now bullish.
In the Asian session, the NZD / USD pair has extended its rebound above 0.6230. A further decline in the US Dollar Index supports a recovery in the Kiwi commodity (DXY). After giving up the crucial support of 105.00, the USD Index has increased its losses. The USD Index has decreased to close to 104.80, and analysts predict that it will stay volatile until the ISM Services PMI statistics for the United States are released.
After a strong rebound on Thursday, S&P500 futures are showing slight losses in the Asian session, indicating a small amount of prudence despite the general optimistic market mood. Ten-year US Treasury notes currently offer returns that are higher than 4.06%.
Despite bullish comments from Federal Reserve (Fed) officials, the USD Index is having trouble finding its footing. Raphael Bostic, president of the Atlanta Fed, has advocated for a 25 basis point rate increase in March, but he has kept the door open for a more hawkish rate forecast if inflation and labor market statistics show stronger growth.
After falling to close to the horizontal support level at 0.6200, which was previously a resistance for the New Zealand Dollar, NZD / USD has seen a surge in purchasing activity. The 200-period Exponential Moving Average (EMA) for the Kiwi asset has been scaled above at 0.6220, suggesting that the overall direction is now positive.
The momentum indicator has already produced a bullish turnaround, according to an examination of the Relative Strength Index (RSI) (14). The RSI (14)'s fluctuation range has already changed to 40.00-80.00. As a result, at 40.00, the momentum gauge has found support.
When the Kiwi asset surpasses the March 1 high at 0.6276, a purchasing chance will arise. This will push the pair toward the round-level resistance at 0.6300 and the high from February 14 at 0.6389.
In a different situation, the commodity will be dragged toward the November 28 low at 0.6155 if the January 6 low at 0.6193 is broken. A breach below this level would expose the asset to further losses toward the round-number support at 0.6100.
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