NZD/USD remains under pressure as the Federal Open Market Committee (FOMC) is on track to continue to raise interest rates. Chairman Jerome Powell recently was quoted as saying he, “believes that--for now--the best way forward is to keep gradually raising the federal funds rate.”
In addition, a slight deterioration in investors’ risk-appetite, favors the US dollar. The ongoing slump in commodities like gold and copper also putting downward pressure on commodity-linked currencies - like the Kiwi.
The NZD/USD macro picture remains bearish for now, but lets see what the charts say.
Monthly Chart (Curve Timeframe) – monthly supply is at 0.76000 and monthly demand is at 0.62500 and in recent months broke the monthly up trend line that was established back in 2016.
Weekly Chart (Trend Timeframe) – the trend is been sideways since mid-June, but recently broke the range and is now sitting within the weekly demand zone at 0.67300.
Daily Chart (Entry) – there is daily supply at 0.69400 and daily demand down below at 0.65000. The chart suggest shorting NZD/USD if price pulls back between the 0.69400 -0.70000.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Published on
by rollandthomas