#NZDUSD @ 0.62240 stays above 0.6220s in a volatile session as Fed Chair Powell speaks. (Pivot Orderbook analysis)

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• NZD/USD stays above 0.6220s in a volatile session as Fed Chair Powell speaks.
• The removal of hawkish language in the monetary policy statement signals a possible Fed pivot.
• Fed Powell: If the US gets tip into a recession, I “hope it would be mild.”

The pair currently trades last at 0.62240.

The previous day high was 0.6219 while the previous day low was 0.6163. The daily 38.2% Fib levels comes at 0.6198, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6184, expected to provide support.

The NZD/USD advances sharply, eyeing the 200-day SMA at 0.6255, after the US Federal Reserve (Fed) decided to raise rates by 25 bps, though it opened the door for a “possible” pause. As Fed Chair Jerome Powell speaks, the NZD/USD is trading volatile within the 0.6220-60 area at the time of writing.

In his press conference, Federal Reserve Chair Jerome Powell said the Fed would take a data-dependent approach, and there are some signs that supply and demand in the labor market are returning to balance. He added that inflation pressures continued to run high, and if the US hits a recession, it would be mild.

Powell added that the US central bank is prepared to do more if warranted and emphasized the Fed’s goal to restore price stability while adding that rates would remain higher “for a while.”

On Wednesday, the Fed Chair Powell and Co. voted to raise rates to the 5.00% – 5.25% area, though tweaked its language regarding additional rate hikes. The Fed shifted to being data-dependent and will asses future decisions based on information about the economy, inflation, and the overall financial markets behavior.

Federal Reserve officials added that ongoing tightening of credit conditions could aid the US central bank to achieve its 2% inflation goal. Despite removing some hawkish language from the monetary policy statement, policymakers reiterated that inflation is high and that the labor market is tight. Therefore, June’s meeting would likely be live, even though the futures markets had begun to price in the first rate cut in September. Concerning the balance sheet reduction, the Quantitative Tightening (QT) would continue as planned.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6239 at the time of writing. Pair opened at 0.6208 and is trading with a change of 0.5 % .

The pair is trading above its 20 Daily moving average @ 0.6199, above its 50 Daily moving average @ 0.6207 , below its 100 Daily moving average @ 0.6283 and above its 200 Daily moving average @ 0.616

The previous day high was 0.6219 while the previous day low was 0.6163. The daily 38.2% Fib levels comes at 0.6198, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6184, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6175, 0.6141, 0.6119
• Pivot resistance is noted at 0.6231, 0.6253, 0.6287

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