NZD/USD bulls need to stay above 0.6120

• NZD/USD is beaten down but bullish prospects are above the 0.6120s.
• A move beyond 0.6150 would be expected to see the 0.6180s.

NZD/USD is ending the North American day down by some 0.35%, sliding from a high of 0.6194 to a low of 0.6123 on the day. The day has been dominated by global recession fears and movement in the US dollar and yields. 

''This intraday volatility broadly reflects moves in US bond yields and equity index futures; the former had drifted off yesterday, but are back up again as markets weigh the prospects of stickier inflation, and that’s weighing on the NZD,'' analysts at ANZ Bank said.

''Markets remain attuned to the first in, first out thematic in relation to the policy cycle, and NZ has become the unwitting poster child of that concept, and it’s natural that markets have become cautious about the NZD with the Reserve Bank of New Zealand also hinting that they may pause after the next couple of hikes (while the Fed keeps hiking).''

NZD/USD technical analysis

Meanwhile, from an hourly perspective, the price is finding support in what could turn out to be the base of the last leg of a potential Gartley pattern. If the bulls commit above the 0.6120s, a move beyond 0.6150 would be expected to see the 0.6180s as price mitigates a price imbalance and heads towards the 0.6190s as the last defence for a move into the 0.6220s.