Just as it hits new high, NZDUSD backs off.
“Rising coronavirus cases in China triggers a shift in market sentiment that emphasize favor towards safe havens.”
New Zealand dollar edged down slightly during European trading session as the market weighs on rising economic concern in China. Lately, China has recorded an upsurge in coronavirus cases which prompts the government to impose strict lockdown measure. The economy has suffered from several local lockdowns in the past, which jeopardizes market sentiment. Recent developments in China prompts the market to re-evaluate their take on the global economy, thus triggering some demand on safe havens.
Quick recap on NZDUSD
The pair recovered substantially from the lower end, while currently approaching the long-term downward trendline.
NZDUSD Weekly Technical Analysis
From weekly perspective, the pair has recovered substantially while current limit lies upon downward trendline.
NZDUSD Daily Technical Analysis
From daily perspective, bears began to emphasize their stronghold, seen from recent pullback attempt.
ORDER: SELL STOP
STOP LOSS: 0.6250
Target 1: 0.6080
Target 2: 0.6000
ZFX Analyst’s Comment
Based on recent price action, we expect bearish momentum to pickup in the next few trading days, with a strong pullback from up top looming.
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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