As the DXY weakened, this saw the NZDUSD trade steadily higher, bouncing from the 0.6150 price level up toward the 0.6280 resistance level. The 0.6280 resistance level is crucial as it aligns with the 61.80% Fibonacci retracement level from the previous swing down.
It is likely that the price could consolidate along this resistance level briefly, with a slight downside potential toward the price level of 0.6230.
However, if the DXY continues to weaken, the NZDUSD could break above the immediate resistance level to trade significantly higher toward the next key resistance and round number level of 0.64.
With no major news for the NZD on the horizon, the next directional bias of the NZDUSD is primarily dependent on the volatility of the DXY.
It is likely that the price could consolidate along this resistance level briefly, with a slight downside potential toward the price level of 0.6230.
However, if the DXY continues to weaken, the NZDUSD could break above the immediate resistance level to trade significantly higher toward the next key resistance and round number level of 0.64.
With no major news for the NZD on the horizon, the next directional bias of the NZDUSD is primarily dependent on the volatility of the DXY.
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