The NZD/USD keeps falling for the second day as the market gets anxious. The US Dollar is gaining strength because of trade tensions and lower hopes for an immediate interest rate cut by the Federal Reserve, which is hurting the NZD. Donald Trump has announced a 30% tariff on EU and Mexican products starting August 1. This move lowers demand for riskier assets. Technical analysis shows a bearish trend, as failing to break the 100-period Simple Moving Average indicates more declines ahead.

Nzdusd Support And Resistance Levels

The NZD/USD is now around the 0.5980-0.5975 support level. If it drops below the 61.8% Fibonacci retracement, it could fall further to 0.5935 and possibly reach 0.5900. Resistance might appear at 0.6025. If the pair breaks past 0.6025, it could rise to 0.6060 and even attempt to reclaim 0.6100. Any further movement may test 0.6120, shifting the outlook to favor buyers. The US Dollar has shown strength against various currencies this past week, especially the Yen. A visual heat map highlights percentage changes and reveals currency movements based on specific base and quote pairs. Building on the earlier analysis, the recent strength of the US Dollar is tied to changing interest rate expectations in the United States. With decreased expectations for rate cuts and heightened trade tensions following Trump’s tariff announcement, riskier currencies like the New Zealand Dollar have been affected. This isn’t just a reaction to headlines; it reflects a broader market adjustment as traders rethink future yields. Traders who focus on price momentum and short-term interest rates might want to reevaluate their positions around the current levels of 0.5980-0.5975. This area has shown strong interim support, but recent price actions are raising doubts about its stability. If sellers maintain pressure and break below this level along with the 61.8% Fibonacci retracement, it would likely lead to a decline toward 0.5935, with 0.5900 following closely. These numbers reflect the market’s reaction to moving below key technical points that previously served as balance zones.

The Broader Us Dollar Strength

Resistance is clearly visible around 0.6025. This level is not just a number; it corresponds to recent highs where sellers have consistently reentered. If buyers can push through this barrier, a quick jump to 0.6060 is possible, with more interest likely near 0.6100 and 0.6120. However, as long as the pair stays below 0.6025, the trend remains downward. The heat map indicates that the US Dollar’s strength is widespread. Its strong performance against the Yen has been notable, but this resilience extends to other pairings. The Dollar’s firmness across various currencies suggests a reevaluation of interest expectations rather than being driven by specific country changes. In addition, we’ve noticed reduced volatility among some commodity-linked currencies. External risks, like tariffs on EU and Mexican goods, could continue to affect market sentiment, making risk-sensitive currencies struggle. Traders involved in derivatives should be cautious and manage their exposure carefully, especially around identified breakout levels. In the upcoming sessions, market participants should pay attention to any changes in tone from Federal Reserve officials. Even subtle comments can influence market pricing, especially when traders are more sensitive to a lack of dovishness than any hawkish moves. Moreover, reactions to economic data will be particularly significant, as every figure will be assessed in terms of ‘how long until easing?’ With the technical situation, hawkish re-evaluations, and negative risk sentiment aligning, conditions favor positions that align with current Dollar strength until we see a break in momentum. Not all support levels will hold when the fundamentals are supporting one side. Create your live VT Markets account and start trading now.

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