Struggles for a confident move ahead of Fed policy

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<li><strong>NZD/USD gathers strength for an ascending triangle pattern breakout ahead of Fed policy.</strong></li>
<li><strong>The NZ economy is seen growing by 0.5% in Q2 vs. a contraction of 0.1%, recorded for the January-March quarter.</strong></li>
<li><strong>The US Dollar Index remains subdued as the Fed is expected to keep interest rates unchanged at 5.25-5.50%.</strong></li>
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<p>The NZD/USD pair trades sideways in a narrow range of 0.5932-0.5944 in the European session. The Kiwi asset struggles for a direction as investors await the interest rate decision from the Federal Reserve (Fed), which is expected to remain unchanged.</p>
<p>S&amp;P500 futures generated marginal gains in the London session. However, the overall market mood is quiet ahead of the <a href="https://www.fxstreet.com/macroeconomics/central-banks/fed">Fed</a> policy meeting. The US Dollar Index (DXY) remains subdued as the Fed is expected to keep interest <a href="https://www.fxstreet.com/rates-charts/rates">rates</a> unchanged at 5.25-5.50% but hawkish guidance cannot be ruled out.</p>
<p>Meanwhile, the New Zealand Dollar will remain in action ahead of the q2 <a href="https://www.fxstreet.com/economic-calendar/united-states">Gross Domestic Product</a> (GDP) data. As per the expectations, the NZ economy grew by 0.5% vs. a contraction of 0.1%, being recorded for the January-March quarter. The annual GDP is seen accelerating at a slower pace of 1.2% vs. the former reading of 2.2%.</p>
<p>NZD/USD attempts to deliver a breakout of the Ascending Triangle chart pattern formed on a two-hour scale. The horizontal resistance of the aforementioned chart pattern is plotted from September 6 high at 0.5942 while the upward-sloping trendline is placed from September 7 low at 0.5847.</p>
<p>The 20-period Exponential Moving Average (EMA) at 0.5932 is providing a cushion to the New Zealand Dollar.</p>
<p>Meanwhile, the Relative Strength Index (RSI) (14) attempts to shift into the bullish range of 60.00-80.00. If the RSI (14) manages to do so, a bullish momentum will get triggered.</p>
<p>Going forward, a decisive break above September 14 high at 0.5945 would expose the asset to August 23 high around 0.5980, followed by August 8 low around 0.6035.</p>
<p>On the contrary, a breakdown below September 13 low at 0.5980 would drag the major toward September 7 low at 0.5847. A slippage below the latter would expose the asset to the round-level support at 0.5800.</p>
<h2>NZD/USD two-hour chart</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/NZD_USD%20(2)-638307982592561072.png" target="_blank" rel="noopener"><img decoding="async" src="https://editorial.fxstreet.com/miscelaneous/NZD_USD%20(2)-638307982592561072.png" style="width: 600px; height: 266px;" /></a></p>
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<br /><a href="https://www.fxstreet.com/news/nzd-usd-price-analysis-struggles-for-a-confident-move-ahead-of-fed-policy-202309200917">Source link </a></p><p>The post <a href="https://forextraderhub.com/struggles-for-a-confident-move-ahead-of-fed-policy.html">Struggles for a confident move ahead of Fed policy</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>