Comprehensive NZD/USD for November 22, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the NZD/USD for 22nd November 2023. 

NZD/USD Key Takeaways 

• USD bulls are unwilling to give up: The minutes of Federal Reserve meeting showed that the Federal Reserve still has the possibility to raise interest rates and will maintain restrictive policies for a long time. The U.S. dollar index stopped falling. 
• New Zealand Economy: The Ministry of Finance said that domestic data showed that the economy was cooling down. New Zealand’s trade balance rose slightly in the latest October, but was still on a contraction trend. 

NZD/USD Technical Analysis 

NZD/USD Daily Chart Insights

• Stochastic Oscillator: The indicator tangles and fluctuates in the overbought area, suggesting that the current market is encountering resistance or still needs some time to consolidate. 
• Resistance price: The 200-day moving average and the red neckline price are double resistance areas. There is still a certain probability that the exchange rate will weaken and decline before it completely breaks through. 
• Price Action: The exchange rate was blocked yesterday and formed a doji bar. This pattern hints the unclear of the market price. However, if the exchange rate can break through yesterday’s high, the exchange rate will establish a bullish trend and look for entry opportunities at that time. 

NZD/USD 1-hour Chart Analysis

• Moving average support: The downward trend in the US session yesterday encountered resistance at the 33-period and 65-period moving averages, and the market has a certain rebound trend in the short term. If it falls below this support, the New Zealand dollar may look towards the 200-period moving average. 
• Wolfe wave: The pattern of the 1-hour chart is relatively clear. Yesterday, point 5 fell after touching the extension line linked by points 1 and 3. Theoretically, the first target looks towards the area around point 4, and the second target looks towards the extended line connecting points 1 and 4. 
• Alternative trend line: The market formed a top pattern yesterday. After falling below the alternative trend line, a retracement structure appeared during the current Asian session. If it cannot break through the alternative trend line, NZDUSD will mainly depreciate. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 0.60511, 
• Bullish Scenario: Bullish sentiment prevails above 0.60511, first target 0.60828, second target 0.61182; 
• Bearish Outlook: In a bearish scenario below 0.60511, first target 0.60166, second target 0.59852. 

Conclusion