NZD/USD has shown signs of attempting a fresh increase above the crucial 0.6000 resistance zone, indicating a shift towards a bullish trend. The pair recently broke a major bearish trend line with resistance at 0.5990 on the 4-hour chart, suggesting a potential reversal in the near future. The New Zealand Dollar started a recovery wave from the 0.5940 zone against the US Dollar, clearing several hurdles near 0.5990 and 0.6000 to enter a positive zone.
On the technical side, the pair has broken above the 38.2% Fib retracement level of the downward move from the 0.6216 swing high to the 0.5939 low. Additionally, NZD/USD has settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour), indicating a potential upward momentum. However, the pair is currently facing hurdles near 0.6080 and the 50% Fib retracement level, which could act as a significant resistance level. A clear move above 0.6080 resistance may pave the way for further gains towards the 0.6200 level.
In terms of support, immediate levels are seen near 0.6050, followed by major support at 0.6020 and the 100 simple moving average (red, 4-hour). A downside break below the 0.6020 support could trigger a decline towards the 0.5950 support, with the possibility of further losses towards the 0.5920 level in the short term.
Gold Prices Remain Elevated
Meanwhile, gold prices have remained stable near $2,350, with potential upside movements towards the $2,380 level. The precious metal continues to be in focus ahead of the US Consumer Price Index (CPI) release and the Federal Open Market Committee (FOMC) meeting minutes, which are expected to provide insights into the future monetary policy direction.
Economic Releases and Forecast
In terms of economic releases, the US Consumer Price Index for March 2024 (MoM) is forecasted to increase by 0.3%, slightly lower than the previous reading of 0.4%. On a year-over-year basis, the US CPI is expected to rise by 3.4% in March 2024, compared to the previous figure of 3.2%. The FOMC meeting minutes will also be closely watched for any hints regarding the future trajectory of interest rates and overall economic outlook.
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