We could be looking at a mixed market on Wednesday with the NZD/USD continuing to strengthen on the inflation news and the AUD/USD weakening on U.S. – China concerns.
Based on the early price action, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the 50% resistance cluster at .6778 to .6781.
Ever since the EURUSD declined from 1.1570, it’s moves can be depicted by a short-term descending trend-line, which in-turn presently drags the quote towards 1.1325 support-line. Should prices refrain to respect the 1.1325 rest-point, the 1.1300 and the 1.1265-60 may lure the sellers ahead of pushing
The bleak economic forecasts are likely to continue to pressure the Aussie and the Kiwi on Tuesday especially if investors start to move money into the safe-haven U.S. Dollar. Basically, if the global economy slows especially China then the Australian and New Zealand economies should feel similar pressure
Based on last week’s price action and the close at .6744, the direction of the NZD/USD this week is likely to be determined by trader reaction to the 50% level at .6781.
The tone changed from short-term bullish to short-term bearish last week when U.S. Treasury yields started to rise. This helped make the U.S. Dollar a more attractive investment. Yields are being boosted by increased demand for risky assets tied to the optimism over the positive developments in the trade
Based on the price action on Thursday and Friday, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the main 50% level at .6781.
The NZD/USD is currently trading inside yesterday’s range. This tends to indicate investor indecision and impending volatility. The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on January 15.
Having failed to sustain 100-day SMA breakout, the EURUSD now rests around 50-day SMA level of 1.1380, breaking which nine-week old support-line, at 1.1320, and the 1.1260 can reappear on the chart. In case prices continue declining under 1.1260, the 1.1215 and the 61.8% FE level of 1.1080 may gain sellers
The AUD/USD and NZD/USD could remain in a range on Wednesday, underpinned by the hopes that China will soon announce a stimulus package. As noted on Tuesday, traders will be particularly sensitive to any positive or negative comments about a potential trade deal between the U.S. and China.
The strong momentum into Friday’s close suggests the rally will likely continue this week especially if the U.S. Dollar resumes its downtrend and an air of optimism over the timely end of the U.S.-China trade dispute lingers.
Appetite for risk should continue to generate the Aussie and Kiwi’s upside momentum today on the back of positive comments from China.
Today’s lower price action in the AUD/USD and NZD/USD may only be a knee-jerk reaction to the data, which gave investors an excuse to book profits from the strong rally since the beginning of the year. Although a bearish surprise, the trade data is old or stale information. Currency traders tend to look
Based on last week’s price action and the close at .6834, the direction of the NZD/USD this week is likely to be determined by trader reaction to the main Fibonacci level at .6818.
There are no major reports from Australia or New Zealand this week so the focus will remain on developments in the U.S. The price action this week will continue to be driven by the direction of the U.S. Dollar. The greenback will largely be influenced by the direction of U.S. Treasury yields and yields
The current price action in the AUD/USD and NZD/USD indicate that investors remain positive that a US-China trade agreement could be in place by March 1, or at the end of the tariff truce between the two economic powerhouses. However, any deal may just be a preliminary step toward a longer-term solution
Hopes over a US-China trade deal have been raised by the news that both economic powerhouses will continue high level talks for an unscheduled third day on Wednesday.
Momentum is on the side of the AUD/USD and NZD/USD on Monday so continue to look for both Forex pairs to strengthen throughout the session. The rally in the Aussie could slow down later in the session on position-squaring ahead of Tuesday’s Trade Balance report.
The AUD/USD and NZD/USD will rally this week if the U.S. Dollar continues to retreat due to Powell’s dovish comments. Increased demand for risk will be another bullish factor driving the Aussie and Kiwi higher. Gains could be limited if Treasury yields rise too rapidly. Investors will also be watching
Based on last week’s price action and the close at .6736, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the short-term 50% level at .6752.
Traders may delay their reactions to the jobs data because at 1515 GMT, U.S. Federal Reserve Chairman Jerome Powell is scheduled to speak. Investors will be listening to hear if he softens his tone on interest rate hikes. Market participants are currently expressing fears that the Fed could bring on
Following its U-turn from 1.1490-1.1500 resistance-region, EURUSD bounced off the seven-week long ascending support-line, near 1.1295, which in-turn signal brighter chances for the 1.1400 and the 1.1420 to reappear on the chart. However, 100-day SMA level of 1.1480 and the 1.1490-1.1500 could confine
The AUD/USD and NZD/USD have retraced the earlier sell-off and are in a position to turn higher for the session. It may take days to figure out what happened in the market. We may even see prices change. In the meantime, the move is being blamed on aggressive shorting and sell stops that were triggered
Based on the early price action and the current price at .6628, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at .6633.