FXOpen
The New Zealand Dollar (NZD) fell broadely against the US Dollar (USD) yesterday, halting the 6-day long winning streak and leaving a classic two-bar bearish reversal setup on the daily chart which is considered a good indication for steep losses in the near future. The sentiment however remains bullish due to Higher High (HH) and Higher Low (HL) in the recent wave.
Tehcnical Analysis
As of this writing, the pair is being traded near 0.8658. A hurdle may be noted around 0.8743, the intraday high of yesterday ahead of 0.8779 that is the swing high of the previous wave. A break above 0.8779 will spurr a renewed buying interest, opening doors for the fresh all-time high above 0.8800.
On the downside, the pair is likely to find a support near 0.8646, the 50% fib level ahead of 0.8555 that is the swing low of the previous wave as demonstrated in the above chart.
Yellen Testifies
The recent dip in the US Gross Domestic Product (GDP) report was mainly due to the below-average temperatures across the Northern America during the winter season and the growth should see considerable increase during the second quarter, Fed chair Janet Yellen said yesterday in her testimony to the joint committee.
She expressed satisfaction over the surprise slump in the unemployment rate during April which fell below the central bank’s 6.5% threshold.
Trade Ideas
Selling the pair on rallies appears to be a good strategy. The stop should be placed at the swing high of the recent upward wave while the target may be near the 0.8576 support as described above.
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
Latest articles
US Government Shutdown: Assessing Economic Impact and Recession Risks
The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid
S&P 500 Analysis: Price Reaches The Edge of Abyss
Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached
Bitcoin Cash Analysis: Promising Resistance Breakout
Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of