NZD/USD got rejected from a previous resistance area and appears set to check lower inflection points!

How low can NZD/USD go before it extends its weeks-long uptrend?

Let’s try the 4-hour timeframe:

NZD/USD 4-hour Forex Chart by TradingView

NZD/USD has been making higher highs and better lows because the start of May when the pair found support from the .5875 area of interest.

Then, weaker-than-expected U.S. CPI readings bumped the pair allll the best way as much as the .6220 levels yesterday. Unfortunately for the bulls, the Fed also pulled a “hawkish hold” event and the U.S. dollar regained a few of its losses.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. For those who haven’t yet done your fundie homework on the U.S. and the Recent Zealand dollars, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

NZD/USD is now trading closer to the .6165 area near the R1 (.6178) Pivot Point line and a mid-channel support within the 4-hour timeframe.

Think Kiwi will see more losses against the Greenback before the bulls step in? Look out for bullish candlesticks from the present levels. A move to the .6140 Pivot Point line and 100 SMA area can be on the table if NZD/USD gains bearish momentum after its rejection at .6220.

We may even see a retest of the .6100 psychological handle if NZD/USD bears aim for the underside of the ascending channel pattern!

But when the U.S. dollar continues to see bullish demand, or if market risk sentiment leans against risk-taking, then NZD/USD may extend its downswing below the channel pattern. The pair may head to the 200 SMA and the S1 or S2 Pivot Point areas before seeing sustained bullish pressure.

Good luck and good trading this one!