Holiday mode, disinflation focus to unlock Kiwi upside?
Having broken downtrend resistance after logging another failure below the 200-day moving average, NZD/USD may enjoy some upside in the coming days as trading volumes thin out ahead of US Independence Day.
With Jerome Powell reigniting Fed rate cut hopes with dovish language on Tuesday, it’s difficult to see risk appetite faltering dramatically in the absence of an unexpected event, pointing to a rare window for the Kiwi strengthen.
While there are major risk events to navigate, including the ISM non-manufacturing PMI later today and non-farm payrolls on Friday, with the focus back on disinflation, it would have to take some strong data to make a meaningful mark on rates pricing.
Mirroring the break of the downtrend in price, RSI also broke its downtrend on Tuesday, pointing to a possible shift in momentum. Buying at these levels with a stop below the 200-day moving average is a trade to consider, targeting a push back to .6150.
Between entry and target, the 50-day moving average and horizontal resistance at .61052 are two levels to watch. If they were to be broken, considering raising your stop loss order to provide a free-hit on upside.
DS
With Jerome Powell reigniting Fed rate cut hopes with dovish language on Tuesday, it’s difficult to see risk appetite faltering dramatically in the absence of an unexpected event, pointing to a rare window for the Kiwi strengthen.
While there are major risk events to navigate, including the ISM non-manufacturing PMI later today and non-farm payrolls on Friday, with the focus back on disinflation, it would have to take some strong data to make a meaningful mark on rates pricing.
Mirroring the break of the downtrend in price, RSI also broke its downtrend on Tuesday, pointing to a possible shift in momentum. Buying at these levels with a stop below the 200-day moving average is a trade to consider, targeting a push back to .6150.
Between entry and target, the 50-day moving average and horizontal resistance at .61052 are two levels to watch. If they were to be broken, considering raising your stop loss order to provide a free-hit on upside.
DS
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