I’ve obtained this dangerous NZD/USD countertrend play on my radar right this moment.
Will the U.S. PPI launch permit the channel resistance to carry? Or will we see one other sharp greenback selloff?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked outa simple trend pullback setup on USD/CHF. Be sure you take a look at if it’s nonetheless a legitimate commerce!
And now for the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Knowledge:
Fed official Brainard: Controlling inflation is “most vital activity”
Fed official Daly says first hike might are available March
Tokyo confirmed rising its pandemic alert degree
New Zealand constructing consents recovered by 0.6% after earlier 2.1% drop
Chinese language vice premier known as for harder motion to curb infections
Germany’s BGA commerce affiliation warned of big provide chain disruptions on account of Omicron
Fed official Harker open to greater than three hikes this yr if required
U.S. headline and core PPI at 1:30 pm GMT
U.S. preliminary jobless claims at 1:30 pm GMT
FOMC Brainard’s testimony at 3:00 pm GMT
Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: NZD/USD
Uncle Sam’s newest CPI report sparked a threat rally, however will it final?
Or will the upcoming catalysts put buyers in a special temper right this moment?
Specifically, I’ll be retaining shut tabs on the PPI numbers and FOMC Brainard’s upcoming testimony. One other set of sturdy value pressures and hawkish remarks could be sufficient to persuade greenback bulls to cost quickly.
If that occurs, NZD/USD might retreat from the highest of its rising channel seen on the hourly timeframe.
Stochastic is indicating overbought situations or exhaustion amongst consumers in any case, and the 100 SMA is under the 200 SMA for now.
If sellers defend the ceiling, the pair might slide again to the help zones on the channel backside or mid-channel space of curiosity at .6800.
As a result of this potential play runs in opposition to the continuing uptrend, it’d make sense to be extra prudent with setting stops and being able to take the other place if a breakout happens!