NZDUSD New Range to Start the Week

The New Zealand dollar (NZDUSD) starts the week in a range it hasn’t seen since November, but what does it mean for traders?

Today’s video details how to trade this new range, including key levels to watch and targets.

Plus, I’ll share the latest on the US Dollar Index (DXY) as it tests a potentially significant level from 2022.

Let’s get started!

The New Zealand dollar broke a significant support on Friday, dropping below the 0.6050 handle for the first time since November.

The level has been a daily pivot for NZDUSD since its inception.

We also saw the NZDUSD confirm a fakeout above a key trend line late last year, which is still impacting the pair.

As we know, a fakeout to one side of a level or pattern often triggers an extended move in the opposite direction.

Furthermore, Friday’s breakdown from 0.6050 support isn’t an isolated case of USD strength.

The US Dollar Index (DXY) broke above a trend line from November to end last week, although it remains below the 104.45 resistance.

We also saw the Euro Index (EXY) break down from a critical weekly level from 2022.

So, market conditions are again starting to tilt in favor of US dollar bulls.

As for NZDUSD, as long as the pair remains below 0.6050 on a daily closing basis, I like it lower toward 0.5870.

Alternatively, a sustained break back above 0.6050 on the daily time frame would confirm a (bullish) fakeout and expose the 0.6200 range highs.

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