The NZDUSD currency pair has rebounded from its previous lows at 0.60756 over a two-month period, but there hasn’t been much sustained upward movement. According to the view of Nehcap, they expect the recovery to be limited.

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• NZD/USD recovers from the lower level in two months but lack follow-through.

The pair currently trades last at 0.60756.

The previous day high was 0.6112 while the previous day low was 0.6035. The daily 38.2% Fib levels comes at 0.6064, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6082, expected to provide resistance.

NZD/USD grinds near intraday high below 0.6100, close to 0.6080 by the press time, as snaps a two-day losing streak while bouncing off the lowest level in two months ahead of Wednesday’s European session. In doing so, the Kiwi pair justifies upbeat prints of the Reserve Bank of New Zealand (RBNZ) Inflation Expectations for the third quarter (Q3) of 2023 amid the US Dollar’s pullback.

Also read: RBNZ Survey: NZ inflation expectations rise to 2.83% in Q3 2023

That said, RBNZ Inflation Expectations improved to 2.83% QoQ for Q3 2023 from 2.79% previous reading, favoring hopes of witnessing a rate hike from New Zealand’s central bank.

The same joins the market’s positioning for the US inflation data and the recent risk-positive headlines about China, to help the NZD/USD poke a one-week-old descending resistance line, around 0.6085 by the press time.

It’s worth noting that the looming bull cross on the MACD and the latest improvement in the RSI (14) line underpin expectations of crossing the 0.6085 immediate hurdle, which in turn could lead the bulls toward the downward-sloping resistance line from mid-July, close to 0.6125 at the latest.

Even so, the NZD/USD bulls remain cautious unless witnessing a successful break of the 10-week-long previous support line surrounding 0.6145.

On the contrary, an area comprising multiple levels marked since May 30, close to 0.6030, quickly followed by May’s bottom of 0.5985, can lure the NZD/USD bears during the pair’s further downside.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6076 at the time of writing. Pair opened at 0.6066 and is trading with a change of 0.16% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6203, 50 SMA 0.6166, 100 SMA @ 0.619 and 200 SMA @ 0.623.

The previous day high was 0.6112 while the previous day low was 0.6035. The daily 38.2% Fib levels comes at 0.6064, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6082, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6029, 0.5993, 0.5952
• Pivot resistance is noted at 0.6107, 0.6148, 0.6184

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