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 (additional fees may apply). 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
Microsoft (MSFT) Shares Fall Below $460
As the Microsoft (MSFT) share chart shows:
→ yesterday’s candle closed below $460 — the lowest level since early June last year;
→ the decline from the all-time high near $550 has exceeded 16%.
Why MSFT Shares Are Falling
The downward move
Natural Gas Prices Fall to a Near Five-Month Low
As the XNG/USD chart indicates, natural gas prices are trading very close today to the 2025 low formed in August.
The factors weighing on natural gas prices include:
→ Updated weather models, which are forecasting higher temperatures in the eastern
Market Remains Cautious: Euro and Pound Hover Near Support Ahead of Key Data Releases
European currencies remain under pressure and are trading close to key support levels amid cautious sentiment and anticipation of a dense slate of macroeconomic releases. After a sharp decline in previous sessions, the euro and the pound attempted a modest