FXOpen
The New Zealand Dollar (NZD) extended downside movement against the US Dollar (USD) on Monday, dragging the price of NZDUSD to less than 0.7100 as sellers remain in control amid inflation news. The technical bias however remains bullish because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.7102. A support may be noted around 0.7055, a major horizontal support as demonstrated in the given below daily chart. A break and daily closing below the 0.7055 support area will incite renewed selling pressure, validating a move towards the 0.6969, the swing low of the latest major downside move.
On the upside, the pair is likely to face a hurdle near 0.7174, the intraday low of yesterday ahead of 0.7325, the high of the latest major upside rally and then 0.7500, a major psychological milestone. The technical bias will remain bullish as long as the 0.6969 support area is intact.
New Zealand Inflation
New Zealand consumer prices rose 0.4% in the second quarter and were up 0.4% from a year earlier, Statistics New Zealand said Monday. Economists had expected the consumer prices to rise 0.6% in the quarter and 0.6% from a year earlier.
Some economists said the RBNZ might be considering a cut in the interest rates soon to offset concerns about slowing world growth and an elevated currency. Still, an interest rate cut now might exacerbate tensions around rising house prices and fears of potential financial sector instability.
Trade Idea
Considering the overall technical outlook, buying the pair near the mentioned support levels upon emergence of a valid bullish reversal candle appears to be a good strategy in short to medium term.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Gold Price Plunges After Climbing to $3,500 for the First Time
As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading
Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.
Moreover, the price is
Four 1-Minute Strategies for Scalpers
Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.