FxWirePro: NZD/USD downside pressure builds, key support level in focus

• NZD/USD continued to weaken on Wednesday as waning risk appetite and stronger US dollar weighed on the Kiwi.

• Strength in the U.S. dollar remains a major driver, with the index pushing to a fresh 13-month high at 101.43, reflecting sustained safe-haven demand and tighter Fed expectations.

• Market pricing has shifted toward higher odds of Federal Reserve rate hikes, supported by increasingly hawkish commentary from policymakers, further boosting USD strength.

• On the geopolitical front, the U.S. Senate advanced legislation requiring an end to military action in Iran, adding another layer of political uncertainty to global markets.

• Attention is also on monetary policy signals from New Zealand, with RBNZ Governor Breman scheduled to attend the closed-door BIS conference on Friday, which could offer clues on future policy direction.

•  Immediate resistance is located at 0.5724(June 23rd high), any close above will push the pair towards 0.5759(38.2%fib).

•  Support is seen at 0.5646(23.6%fib) and break below could take the pair towards 0.5611(Lower BB).

 Recommendation: Good to sell  around 0.5670 with stop loss of 0.5750 and target price of 0.5600