NZD/USD Price Analysis: Faces stiff barricades around 0.6200 as US Dollar stabilizes
- NZD/USD has sensed selling interest around 0.6200 as the US Dollar Index (DXY) has found intermediate support.
- S&P500 futures have trimmed gains added in early Europe as fears of global recession have elevated again.
- NZD/USD is auctioning in a Falling Channel in which each pullback is considered a selling opportunity by the market participants.
The NZD/USD pair has witnessed selling pressure while attempting to stretch the rally above the round-level resistance of 0.6200 in the London session. The Kiwi asset has dropped to near 0.6170 as the US Dollar Index (DXY) has shown stability after correcting to near 102.50.
S&P500 futures have trimmed gains added in early Europe as fears of global recession have elevated again. The commentary from European Central Bank (ECB) President Christine Lagarde that the current monetary policy is not sufficiently restrictive supports more interest rate hikes ahead.
Earlier, the New Zealand Dollar showed strength as investors are hoping that the Reserve Bank of New Zealand (RBNZ) will continue to raise interest rates as Kiwi inflation is extremely persistent.
NZD/USD is auctioning in a Falling Channel in which each pullback is considered a selling opportunity by the market participants. On a broader horizon, potential resistances are placed from May 19 high at 0.6306 and May 11 high at 0.6385.
The 200-period Exponential Moving Average (EMA) at 0.6160 is providing some cushion to the New Zealand Dollar.
Contrary to that, the Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-60.00.
A confident break above May 17 high at 0.6261 will drive the Kiwi asset toward May 19 high at 0.6306 followed by May 08 high around 0.6360.
Alternatively, a downside move below the June 16 low at 0.6116 will expose the asset to June 05 low at 0.6041. A slippage below the latter would expose the asset to psychological support at 0.6000.
NZD/USD two-hour chart
