NZD/USD Struggles Amid Rising US Yields and External Pressures
The New Zealand dollar (NZD) had an uneven start to Monday, initially rising but then falling back down. According to Christopher Lewis, a technical analyst at DailyForex, this is due in part to external factors influencing the market.
Lewis notes that the NZD has been trading around the 0.59 level, which he considers fair value based on historical consolidation patterns between 0.61 and 0.57. The recent bounce suggests a lack of a major US dollar surge, but the rising 10-year yield in the US could pose a problem for the NZD later.
Lewis points out that there is significant volume order flow below the 0.59 level on charts, and recently experienced a 'golden cross.' He believes the market shied away from the 0.60 level, which is near the top of its recent range.
Given ongoing rate increases in America, Lewis expresses bearish views on the NZD, expecting it to continue struggling as long as US rates rise. However, if the NZD breaks through the 0.60 level, the outlook could shift, potentially leading to further gains for the currency.