Fed deliver hawks, greenback stood tall.
“Fed is committed to use its tools to dial down inflation to 2%.”
Dollar bulls marched substantially as Federal Reserve re-emphasized their commitment to quell inflation by raising interest rates. During the European Central Bank panel session, Fed Chair Jerome Powell commented that the US economy is well positioned to withstand negative impact from tighter monetary policy. While Powell agreed that tightening may gone too far, he emphasized that Fed’s commitment is to restore price stability to the economy.
Quick recap on NZDUSD
The pair is biased towards the downside due to recent failure to extend its recovery.
NZDUSD Weekly Technical Analysis
NZDUSD slumped sharply after retracing from 0.6554 while currently testing at 0.6217.
NZDUSD Daily Technical Analysis
From daily perspective, MACD has shown slight increase in bearish momentum, suggesting possible extension of losses. A confirmation can be obtained after closing below 0.6217.
ORDER: SELL STOP
STOP LOSS: 0.6250
Target 1: 0.6100
Target 2: 0.6040
ZFX Analyst’s Comment
While the pair is skewed towards the downside in long-run, it failed to gain bearish traction due to strong support threshold at 0.6217. We will require a confirmatory break below the level that will open next target at 0.6040.
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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