NZDUSD Analysis:
NZDUSD hits the lower low area of the downtrend line in the higher timeframe daily chart.
In the lower timeframe, 30 minutes chart – NZDUSD has broken the top (lower high) area of the minor descending channel.
NZDUSD hits the lower low level of the downtrend line again which leads to the SL price. Due to the strengthening of the US dollar, USD is getting stronger in all USD related Currency pairs.
Why US Dollar is getting strong?
Increasing covid cases in China and stringent lockdowns pose risk to global recovery. Markets remain risk-averse, seeking safety in the US dollar. This is one of the main reasons for the US Dollar to get stronger at this time.
The dollar index, which measures the US currency against six major rival currencies, has strengthened around 7 per cent so far in 2022. US Dollar index has reached the important resistance area 103. Let’s wait for the confirmation of breakout or reversal. For the last 6 years, the US Dollar index is moving between these support and resistance zone.
