Strong footing seen, NZDUSD may extend it further.
“US dollar pullback eyed as no new signal was delivered by Fed official’s comment.”
New Zealand dollar kickstart the day with substantial bullish momentum despite hawkish signal from Fed official. According to report, Fed Vice Chair Lael Brainard commented while they may reduce the pace of rate hikes, she still supports the case for a 50-basis points increase. She also emphasized that the Fed may not ease that easily and acknowledged that “many works are yet to be done” in terms of monetary policy. Nonetheless, as the market has digested the news from Fed, we may expect some pullback from greenback in the near-term.
Quick recap on NZDUSD
The pair undergoes substantial recovery with strong bullish footing as of writing.
NZDUSD Weekly Technical Analysis
From weekly perspective, the pair is skewed towards the upside with recent build up of bullish momentum.
NZDUSD Daily Technical Analysis
Overall bullish momentum is still present in terms of daily perspective, with a confirmation on next bullish move to be obtained from 0.6155.
Trading Idea
ORDER: BUY STOP
ENTRY: 0.6200
STOP LOSS: 0.6100
Target 1: 0.6315
Target 2: 0.6355
ZFX Analyst’s Comment
While the pair remains skewed towards the upside, we will wait for a confirmatory close above nearest resistance before entering the market.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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