NZDUSD: Fresh low in the horizon?
“Deficit widens for New Zealand; greenback continues to triumph.”
NZD/USD slumps towards intraday low following downbeat trade data during early Wednesday trading session. Last month, Trade Balance depreciated to $263 million, significantly lower than previous month of $440 million. Deficit continues to deepen in New Zealand as the China-reliant economy faced with lower exports due to lockdown in Shanghai last month. On the other hand, investors are staying cautious ahead of Fed Chair Jerome Powell testimony which may provide further signal with regards to aggressive policy tightening.
Quick recap on NZDUSD
The pair remains under pressure as it fails to extend its recovery from the bottom level.
NZDUSD Weekly Technical Analysis
Overall, NZDUSD remains skewed towards the downside albeit having difficulty to surpass bullish support near 0.6225.
NZDUSD Daily Technical Analysis
In daily perspective, the pair is currently consolidating in between 0.6407 and 0.6225. This phase may persist for the time being until the pair overcome recent strong hurdle at 0.6225.
ORDER: SELL STOP
STOP LOSS: 0.6270
Target 1: 0.6100
Target 2: 0.6040
ZFX Analyst’s Comment
For the time being, NZDUSD may enter a brief consolidation phase as traders waits for testimony from Fed Chair Jerome Powell. Nonetheless, overall bias is tilted towards the downside and 0.6225 may become the key determinant in underscoring such hypothesis.
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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