On the daily chart below for NZDUSD , we can see the big and fast rally has now come close to the key resistance level at 0.6389. The price is a bit overstretched as depicted by the distance from the blue short period moving average. In such instances we can generally see a pullback or some consolidation before the next extension.

The latest rally out of the strong NFP report suggests that the market is still optimistic on a soft-landing outcome due to an ongoing disinflation, resilient labour market and the Fed expected to pause in June and start cutting already in September.

NZDUSD technical analysis

On the 4 hour chart below, we can see that after breaking the major downward trendline, the market just kept on charging higher with short and shallow pullbacks. The moving averages are offering support for the trend and the buyers are likely to lean on them. We can see that we also have a trendline and it’s likely that in case we get a pullback, the buyers will be leaning on the trendline and the red long period moving average for another push to the upside.

On the 1 hour chart below, we can see more closely the support zone for the buyers. At the 0.6315 level we have the swing support, the trendline and the 4-hour long period moving average. From a risk management perspective, that’s a good spot for the buyers with a defined risk just below the zone.

The sellers, on the other hand, will want the price to break through the support area to pile in and target the 0.6260 swing level. Today, we have the US CPI report and it’s likely that higher than expected data will give the USD a boost while lower than expected figures will weaken it.