Considerations over a “larger for longer” rate of interest atmosphere have pushed USD larger and “dangerous” belongings like NZD decrease at present.
How low can NZD/USD go?
Lemme let you know all in regards to the potential help zones that we’re eyeing:
NZD/USD 1-Hour Foreign exchange Charts by TV
There weren’t numerous top-tier financial releases to shake the monetary markets at present however that doesn’t imply we didn’t see not less than some volatility!
In reality, there’s been a transparent winner prior to now couple of days.
And no it’s not Donna Kelce, mother to TWO Tremendous Bowl gamers and Taylor Swift’s new BFF.
It’s the U.S. greenback, yo! Due to the Fed’s hawkish assertion final week, merchants are flocking to USD as U.S. bond yields additionally go up.
In the meantime, issues over the destructive impression of a high-interest fee atmosphere on the foremost economies’ progress trajectories have created a risk-averse buying and selling atmosphere that dragged on “dangerous” belongings just like the comdolls and pushed secure havens belongings (like USD) larger.
NZD/USD, which not too long ago retested its .5985 resistance zone, dropped to the .5940 space nearer to the 1-hour chart’s 200 SMA.
How low can NZD/USD go earlier than the comdoll pair sees sufficient shopping for stress?
We’re protecting shut tabs on the .5920 development line help. As you’ll be able to see, it’s not too removed from at present’s S1 (.5910) Pivot Level degree. It’s additionally slightly below the 100 and 200 SMAs that will appeal to not less than some bulls.
Right this moment’s U.S. financial knowledge releases may give us alternatives to purchase NZD in opposition to the U.S. greenback.
The U.S. CB shopper confidence, new house gross sales, and Richmond manufacturing index studies are anticipated to print decrease later at present. In the event that they do print to the draw back, then merchants could return to pricing of their “peak fee” bets and unload a few of their lengthy USD positions.
NZD/USD might even see bullish reversal candlesticks and perhaps even a little bit of bullish momentum alongside the help zone that we’ve marked.
Planning on buying and selling NZD/USD doubtlessly extending its September uptrend?
Just be sure you have sufficient technical and basic causes to go lengthy and that you simply’re working towards your finest threat administration strikes should you’re eyeing potential revenue targets like .5985 or .6000!
This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails threat. Please learn our Danger Disclosure to be sure to perceive the dangers concerned.
