NZD/USD Poised for Bearish Reversal After Yellen’s Remarks

FXOpen

The New Zealand Dollar (NZD) extended upside movement against the US Dollar (USD) on Wednesday, increasing the price of Kiwi Dollar to more than 0.6800 following some key economic events particularly the Fed chief Jannet Yellen’s dovish remarks.

Technical Analysis

As of this writing, the pair is being traded near 0.6848. A hurdle may be noted around 0.6883, the intraday high of today ahead of 0.6897-0.6900 which is the confluence of last major upside rally on the weekly chart as well as psychological number.  A break and daily closing above the 0.6900 resistance area could push the pair into a stronger bullish trend, validating a move towards the 0.7000 handle.

4

On the downside, the pair is likely to find a support around 0.6818, the horizontal support (the high of 4th March) ahead of 0.6667, the swing low of the recent downside move on the daily timeframe as demonstrated in the above daily chart.

Yellen’s Remarks

Global economic and financial uncertainty poses risks to the U.S. economy and justifies a slower path of interest-rate increases, Federal Reserve Chairwoman Janet Yellen said in remarks that suggested little appetite to raise rates when officials meet next month. “Given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy,” Ms. Yellen said Tuesday before the Economic Club of New York. She didn’t give details about the timing of the next rate increase. Fed policy makers are set to meet next April 26-27.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a valid bearish reversal candle on the daily chart.

 

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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.

Latest from Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data

Yesterday, statistics from the United States on the dynamics of open vacancies from JOLTS were published. In October, their number decreased by 617.0k to 8.733 million, which turned out to be the lowest result since the beginning of

Forex Analysis

Will rate hikes end when 2023 ends?

Finally, after a seemingly endless period of interest rate increases by the US Federal Reserve over the past few years, there is some degree of inkling that the rate rises may come to an end at the end of this

Commodities

Market Analysis: WTI Oil Price Drops to Lowest Level Since July

As the chart shows, the price of a barrel of US crude oil dropped below 72.10 per barrel yesterday for the first time since July 2023. Fundamentally, this happened against the backdrop of: → Statistics showing that US oil exports

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.