NZD/USD from ThinkMarkets — TradingView

The most important events on today’s economic agenda (USD):

• Core PCE Prices (Monthly): Actual: 0.4% | Expected: 0.4% | Previous: 0.4%.
• GDP (quarterly) – First read: Actual: 0.7% | Expected: 1.4% | Previous: 1.4%.
• Job vacancies and turnover: Estimated: 6.76 million | Previous article: 6.54 million.

Technical vision and expected scenarios:

The dominance of the supply side remains; it continued to fall, break through and close below 0.58479 – 0.58356, which reflects the dominance of sellers and the damage to the demand side, which also confirms the “double top” pattern near the 0.59436 level in the short term.

This negative outlook is also confirmed by the moving averages, which continue to trade below them except for the relative strength index (RSI) curve which has stabilized below the 50 level most of the time.

Based on this, here are the possible scenarios:

1. Negative Scenario:
Staying below 0.58356 may indicate that supply forces continue to keep selling under control in the short term and we may see lower levels targeted around 0.57250.

2. Scenario:
If there is another rise and stabilization above 0.58479, we will see a continuation of the sideways trend in the 0.58479 – 0.59436 range, which would indicate a return of uncertainty and a balance between supply and demand forces.

3. Positive Scenario:
A continued rise above 0.58479 followed by a break and hold above 0.59436 could indicate buying control from demand forces and we may see further gains targeting higher levels around 0.60109.
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