Despite the technical recession reported in the New Zealand economy, there has been a recovery in the movement of the NZDUSD at around 0.6200 from its earlier position at 0.61738.

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• NZD/USD has shown a recovery move to near 0.6200 despite the NZ economy reporting a technical recession.

The pair currently trades last at 0.61738.

The previous day high was 0.6236 while the previous day low was 0.6133. The daily 38.2% Fib levels comes at 0.6197, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6173, expected to provide support.

The NZD/USD pair has rebounded after sensing buying interest near 0.6160 in the early London session. The Kiwi asset is struggling to find acceptance above the round-level resistance of 0.6200 despite multiple attempts.

S&P500 futures have generated more losses as the market sentiment is turning cautious. A skip in the interest rate regime by the Federal Reserve (Fed) lacks optimism as the policy-tightening spell is not concluded now. Also, Fed chair Jerome Powell confirmed that rate cuts are not appropriate this year.

Meanwhile, the New Zealand economy has reported a technical recession as quarterly Gross Domestic Product (GDP) has contracted by 0.1% as expected. Also, the Kiwi economy reported a contraction in its former GDP figures by 0.7%. Two consecutive time contraction in quarterly GDP figures of an economy is considered a technical recession.

NZD/USD faced sheer resistance near the 61.8% Fibonacci retracement (plotted from May 11 high at 0.6385 to May 31 low at 0.5985) at 0.6230 on a four-hour scale. The downward-sloping trendline placed from May 11 high at 0.6385 will continue to provide support to the New Zealand Dollar bulls. Also, the 20-period Exponential Moving Average (EMA) at 0.6161 is acting as a cushion for the Kiwi bulls.

The Relative Strength Index (RSI) (14) is making efforts in keeping its auction in the bullish range of 60.0-80.00.

A confident break above the round-level resistance at 0.6200 will drive the Kiwi asset toward May 17 high at 0.6261 followed by May 19 high at 0.6306.

Alternatively, a downside move below the intraday low at 0.6015 will expose the asset for a fresh six-month low toward 11 November 2022 low at 0.5984. A slippage below the latter would expose the asset toward 02 November 2022 high at 0.5941.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6178 at the time of writing. Pair opened at 0.6206 and is trading with a change of -0.45 % .

The pair is trading above its 20 Daily moving average @ 0.6113, below its 50 Daily moving average @ 0.6179 , below its 100 Daily moving average @ 0.6224 and above its 200 Daily moving average @ 0.615

The previous day high was 0.6236 while the previous day low was 0.6133. The daily 38.2% Fib levels comes at 0.6197, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6173, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6147, 0.6089, 0.6044
• Pivot resistance is noted at 0.6251, 0.6295, 0.6354

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