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NZDUSD Quotes are Recovering after the February Decline

3/7/2023 1:05 PM

In anticipation of the US Federal Reserve Chairman Jerome Powell's speech today at 17:00 (GMT+2) in the US Congress, the NZD/USD pair is recovering, trading at 0.6215.

It is expected that the official will indicate the need for additional signals from macroeconomic statistics to assess the measures already taken on the dynamics of consumer prices. His comments will also be scrutinized for a rate hike later this month: investors now estimate a 72.3% chance of a 25.0 bps increase but admit it could stay high for longer. In turn, the Reserve Bank of New Zealand may be more resolute and increase the value by 50.0 basis points during the April 5 meeting.

Against this background, the long-term uptrend in the NZD/USD pair has a high potential to continue if the price manages to consolidate above 0.6230, and then the target for long positions will be the February high of 0.6530, and if it is held, a decline to 0.6085 and 0.5985 is possible with a trend reversal downwards.

The medium-term trend is downward. Last week, quotes overcame the target zone 2 (0.6178–0.6160) and headed towards zone 3 (0.5998–0.5980). Now, the trading instrument is correcting to the area of key resistance 0.6329–0.6311, and if it is reached, it will be possible to consider sales with the first target around last week's low of 0.6130.

Resistance levels: 0.6230, 0.6530. | Support levels: 0.6085, 0.5985.

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