Can the Kiwi maintain its reversal towards the greenback?
I’ve acquired my eye on this easy uptrend pullback setup on the hourly chart of NZD/USD!
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out retracement levels on GBP/USD just before the BOE statement. Make sure to take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Knowledge:
BOE hiked charges by 0.25% to 1.25% as anticipated
Canadian wholesale gross sales sank 0.5% vs. projected 0.1% uptick
Philly Fed index tumbled from +2.6 to -3.Three vs. estimated +5.1 studying
U.S. constructing permits fell from 1.82M to 1.77M vs. 1.78M forecast
U.S. housing begins slowed from 1.81M to 1.55M vs. 1.70M forecast
BOJ stored rates of interest on maintain at -0.10% as anticipated
BOJ maintained coverage settings for yield curve management and asset purchases
BOJ added reference to FX strikes as a part of its checklist of dangers
Fed Chairperson Powell’s speech at 12:45 pm GMT
U.S. industrial manufacturing and capability utilization at 1:15 pm GMT
U.S. CB main index at 2:00 pm GMT
Use our new Currency Heat Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: NZD/USD
Missed the neckline breakout on this one?
Don’t fear, you would possibly nonetheless have the ability to catch a fast retest!
NZD/USD is pulling again to the damaged neckline of its inverted head and shoulders sample on the .6300 main psychological mark.
This occurs to be proper smack in step with the 61.8% Fibonacci retracement degree, which might appeal to extra Kiwi bulls. In that case, the pair might make its means again as much as the swing excessive close to .6400 subsequent.
Stochastic continues to be heading south to point out that sellers have the higher hand, however the oscillator is approaching the oversold area quickly.
Nonetheless, the 100 SMA is under the 200 SMA to sign that there’s an opportunity the selloff would possibly resume. Higher be careful for a break under the Fibs to gauge if the downtrend might keep intact.
Additionally word that the chances might favor the safe-haven greenback if risk-off flows persist. In spite of everything, the Fed simply hiked rates by 0.75% this week, which could additionally dampen demand for higher-yielding property.
Don’t overlook to be careful for Fed head Powell’s speech later at present if you happen to’re buying and selling this one!