NZD/USD Price Analysis: On the cusp of Falling Channel breakout

• NZD/USD strengthens at the US Dollar's cost.
• Investors await the US NFP that will influence Fed rate-cut bets.
• The RBNZ is expected to keep its OCR unchanged at 5.5%.

The NZD/USD pair rises above the round-level resistance of 0.6100 in Friday's European session. The Kiwi asset extends its winning spree for the fourth trading session on Friday. The major strengthens as the US Dollar (USD) has faced severe pressure due to weak United States (US) ISM Services PMI and the ADP Employment Change for June, which boosts expectations for Federal Reserve (Fed) to begin reducing interest rates from the September meeting.

Next major trigger that will influence market speculation for Fed rate cuts in September will be the US Nonfarm Payrolls (NFP) data for June, which will be published at 12:30 GMT. Economists expect that US employers hired 190K new workers, which were lower than 272K payrolls added in May. The Unemployment Rate is expected to remain steady at 4%.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, has dropped to near 105.00.

On the Kiwi front, investors await the Reserve Bank of New Zealand's (RBNZ) interest rate decision, which will be announced on Wednesday. The RBNZ is expected to keep its Official Cash Rate steady at 5.5%. Therefore, investors majorly focus on the interest rate outlook.

NZD/USD is on the cusp of delivering a breakout of the Falling Channel formation on a four-hour timeframe. A breakout in the above-mentioned chart formation results in a bullish reversal.

A bull cross, represented by 20-and 50-day Exponential Moving Averages (EMAs) near 0.6100, suggests that the overall trend has become bullish.

The 14-period Relative Strength Index (RSI) shifts into the bullish range of 60.00-80.00, suggesting that momentum has been shifts on the upside.

Fresh upside would appear if the asset breaks above July 3 high at 0.6130 for targets near May 28 high around 0.6170 and June 12 high of 0.6222.

However, a breakdown below April 4 high around 0.6050 would expose the asset to the psychological support of 0.6000.

NZD/USD four-hour chart