NZDUSD Tests Key Resistance Ahead of Yellen’s Speach

FXOpen

The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Friday, increasing the price of NZDUSD to more than 0.7300 ahead of Federal Reserve’s chairwoman Jannet Yellen’s speech. The technical bias remains bullish because of a Higher High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 0.7320. A hurdle can be noted around 0.7344-0.7350, the swing high of the recent upside rally as well as the psychological number. A break and daily closing above the 0.7350 resistance area could incite the renewed buying interest, validating a move towards the 0.7500 resistance.

NZDUSD Tests Key Resistance Ahead of Yellen’s Speach

On the downside, the pair is likely to find a support around 0.7286, the intraday low of yesterday ahead of 0.7100, the confluence of a horizontal resistance as well as the psychological number. The technical bias will remain bullish as long as the 0.7086 support area is intact which is the swing low of the recent downside move.

Yellen Speech

For financial markets, it’s the most keenly anticipated speech of the summer. On Friday, Federal Reserve chair Janet Yellen will address the annual gathering of central bankers in Jackson Hole, Wyoming on the subject of “The Federal Reserve’s Monetary Policy Toolkit.” Although Ms. Yellen’s address may prove a wide-ranging speech on what is in the central bank’s arsenal, traders and investors will scrutinize it for any hints about when policymakers are inclined to raise interest rates. What might make investors’ reception of the speech particularly interesting is that they remain skeptical the Fed will move next month (see the second chart) and that markets have been especially calm this month.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around the current levels still 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: US Dollar Weakens after Fed Chairman's Comments EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound Market Analysis: The USD/CAD Rate Drops to Its Minimum of 2 Months Market Analysis: AUD/USD Trims Gains While NZD/USD Extends Increase European Currencies at Strategic Levels

Latest articles

Shares

5 Stocks To Consider in December 2023

As we approach the curtain call for 2023, it's time to reflect on a year filled with market-shaping events. From the resurrection of tech stocks to the fall of financial institutions, the capital markets sector has been anything but dull.

Cryptocurrencies

Market Analysis: Bitcoin Surpasses $40,000 Per Coin

December begins extremely optimistically for the cryptocurrency market, resembling: → December 2020, when bitcoin grew by 46.9%; → December 2017, when bitcoin grew by 38.9%; → December 2016, when bitcoin grew by 30.8%. If there are psychological patterns in the

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Today, investors are assessing the speech of US Federal Reserve Chairman Jerome Powell, who indicated that the interest rate is currently at a restrictive level, but the regulator allows for the possibility of another increase if necessary. The manufacturing business

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.