NZDUSD sitting on key support ahead of the NFP

The Kiwi was one of the pairs that ran higher at the end of 2023 as US Dollar selling flows hit the market as liquidity dried up. As 2024 has kicked off, we have seen a quick reversal lower to support ahead of the Non-Farm Payrolls report due out tomorrow. The risk is that the pair has 1. Created a false upside breakout of a channel during this period. 2. Has slumped back to channel support (ascending). 3. Is at the 23.6% Fibonacci retracement level at .6230. The weekly close following tomorrow’s NFP report will matter. A close below .6200 should allow for a move back to the 200DMA. A close back above the .6300 level would suggest that the bulls have more work to do in the coming weeks.

Blake Morrow

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Blake Morrow