While CPI came in higher, US dollar’s rise were capped.
“CPI lifted the US dollar ever so slightly. All eyes on Fed remarks and other economic data.”
US dollar was traded marginally higher on Wednesday as recent inflation data from January shows slight increase in consumer goods prices. The data, which came in at 0.5% for last month was boosted largely due to rising gasoline prices. However, sentiment among market participants remains divided as a subset of them expects Fed to retain their current policy guidance unless substantial increase in inflation were shown consecutively in upcoming data.
Quick recap on NZDUSD
The pair remains traded within a tight range following previous slump from higher levels.
NZDUSD Weekly Technical Analysis
From weekly perspective, the pair remains traded below 200-MA line which shows significant bearish pressure from the upside.
NZDUSD Daily Technical Analysis
From daily perspective, the pair fails to extend its recovery due to strong selling pressure. This suggests possible downside ahead.
ORDER: SELL STOP
STOP LOSS: 0.6310
Target 1: 0.6210
Target 2: 0.6160
ZFX Analyst’s Comment
The current outlook for the pair remains tilted towards the downside due to persistent selling pressure which limits any effort for a recovery.
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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