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NZDUSD Long-term Trend Remains Upward

2/23/2023 12:48 PM

This week, the NZD/USD pair tested the 0.6210 level, and now it has consolidated above it, preparing to continue growth. The positive dynamics is supported by the recent decision of the Reserve Bank of New Zealand (RBNZ) to raise the interest rate by 50 basis points to 4.75%. An increase in the indicator usually strengthens the national currency, so if the level of 0.6210 is held, we can expect the price to rise to the February maximum of 0.6525 in the long term.

Some pressure on the quotes was exerted by the publication of the February minutes of the US Fed meeting, which, as expected, reflected the "hawkish" attitude of the regulator, which is likely to mean maintaining the policy of high interest rates for a longer time. As for the rate of growth in the cost of borrowing, in February, the department increased the value by 25 basis points and a similar decision is expected during the March meeting of the US Fed.

The long-term trend remains upward. Now market participants are testing the area of key trend support at the level of 0.6210, if this mark is held, the growth will continue. Otherwise, the trend will change to a downward one, and the target for sales will be the 0.6085 mark.

The mid-term trend is downward, which suggests another possibility of a decline in quotations to the area of the target zone 2 (0.6178-0.6160). If target zone 2 is broken down and the price consolidates lower, then target zone 3 (0.5998–0.5980) will act as a new sales target.

The key resistance of the trend is shifting to 0.6391–0.6373. If this area is tested by the price during the upward correction, it will be possible to consider sales with a target at last week's low of 0.6195.

Resistance levels: 0.6525, 0.6750. | Support levels: 0.6210, 0.6085, 0.5985.

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