Commodity Currencies Retreat from Local Highs

FXOpen

Despite the cooling labour market in the US and declining inflation, the American currency continues to move towards new highs. For instance, the USD/JPY currency pair might update the current month's high at 156.70, the NZD/USD sharply declines after retesting 0.6140, and buyers of the USD/CAD pair have confidently secured a position above 1.3600.

USD/CAD

The corrective pullback in the USD/CAD pair ended just below 1.3600. According to technical analysis, on May 16th, a bullish "piercing line" pattern formed on the daily timeframe for USD/CAD. The completion of this pattern could lead to a retest of the key range 1.3690-1.3660. If the price remains above these levels in the coming weeks, the pair’s rise could resume towards 1.3850-1.3820. A drop below 1.3600 could contribute to a more extensive downward correction towards 1.3530-1.3470. Important indicators that may affect USD/CAD pricing in the coming trading sessions:

  • Today at 15:30 (GMT +3:00) - Canada’s Core Consumer Price Index (CPI) for April
  • Tomorrow at 17:00 (GMT +3:00) - US Existing Home Sales

NZD/USD

The NZD/USD currency pair, after a sharp rise in early May, retreated from the resistance at 0.6140. Over several daily sessions, a "tower" pattern was formed according to technical analysis of NZD/USD, the completion of which could facilitate the resumption of the downward movement towards 0.6040-0.5980. If the pair’s buyers manage to break above the base of the indicated pattern, the price could rise to 0.6220-0.6200. This five-day period is crucial for NZD/USD pricing:

  • Tomorrow at 05:00 (GMT +3:00) - Reserve Bank of New Zealand interest rate decision
  • Tomorrow at 21:00 (GMT +3:00) - Publication of FOMC minutes

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