FXOpen
Technical Bias: Bearish
Key Takeaways:
- NZDUSD looks vulnerable as bearish pin bar emerges on hourly chart
- FOMC minutes are due today
- 0.7621 remains key hurdle in short term
The New Zealand Dollar (NZD) extended upside movement against the US Dollar (USD) on Wednesday, increasing the price of NZDUSD to more than 0.76000 ahead of the Federal Open Market Committee (FOMC) minutes which are due to release today during the US evening session.
Technical Analysis
As of this writing, the pair is being traded near 0.7591. A support can be seen around 0.7500, the psychological number ahead of 0.7485, the low of the last major downside move on four-hour timeframe.
On the upside, the pair is likely to face a hurdle near 0.7600, the psychological number ahead of 0.7621, the trendline resistance and then 0.7696, the high of the last major upside rally. The technical bias in short term remains bearish due to a lower low on the four-hour timeframe.
FOMC Minutes
The Federal Reserve is due to release minutes from the last Federal Open Market Committee (FOMC) meeting which was held last month. Investors will be eyeing the FOMC minutes very closely in order to gauge the future monetary policy outlook of the world’s largest economy. Any hawkish statement about earlier than expected interest rate hike could incite huge bearish pressure in the price of NZDUSD and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around the current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing above the 0.7650 resistance area.
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
US Dollar Strengthens Following Trump’s Tariff Decision
US President Donald Trump has announced his decision to impose new tariffs:
→ For Canada, tariffs are set at 35%. They are scheduled to take effect on 1 August, although negotiations may take place before this date, potentially influencing Trump’s
Coinbase (COIN) Shares Reach All-Time High
According to the chart of Coinbase Global (COIN), the share price of the cryptocurrency exchange has reached a historical all-time high (closing price).
The bullish sentiment has been supported by the following factors:
→ Bitcoin price rally. Yesterday, we analysed the
Euro in Focus – Markets on Alert
The euro is holding firm after a notable rally in recent weeks. Both the EUR/USD and EUR/JPY currency pairs are showing signs of consolidation, as markets cautiously assess the outlook against the backdrop of a packed economic calendar.