The NZD/USD pair is taken over by the new monthly son test
the course of the pair USD/USD is approaching its weekly low (0.6137) after staging another failed attempt to test its monthly high (0.6276). You exchange rate Could continue to rebound in the forex from the monthly low (0.6085) as it begins a series of higher highs and lower lows.
The NZD/USD pair does not arrive on a monthly basis
The New Zealand Dollar is trading past the 200-day moving SMA (0.6162) due to New Zealand’s Gross Domestic Product (GDP) report being one of the lowest in the world for the growth rate, and the exchange rate may follow the negative slope of the moving average as the US dollar seems to benefit from the change in risk appetite.
Looking ahead, it remains to be seen whether the 0.6% contraction in New Zealand GDP will sway the Reserve Bank of New Zealand (RBNZ), with the central bank arguing that “consumer price inflation in basis remains too high,” and Governor Adrian Orr could hike rates again at the next April 4 meeting, as the November 2022 Monetary Policy Statement (MPS) shows a steeper path for the rate of change. official (ROC).
According to the Reserve Bank of New Zealand (RBNZ), the OCR is expected to climb above 5% as part of ongoing efforts to fight inflation, but the central bank could come under pressure to end the inflation. bullish cycle as New Zealand’s GDP report shows weaker growth outlook.
That said, the NZD/USD pair may continue to slide ahead of the Federal Reserve’s interest rate decision on March 22 amid the failed attempt to test the monthly high (0.6276), but the Fed developments could influence the near-term outlook. for the exchange rate since the central bank should update the summary of economic projections (SEP).
NZD/USD daily chart
The initial NZD/USD pair is a series of highs and lows plus lows on the forex suite of failed test attempts at the monthly high (0.6276), breaking below the 200-day SMA (0.6162) increases the possibility of a move down to March low (0.6085).
NZD/USD price may follow the negative slope of the long-term moving average as the former support area around 0.6260 (38.2% Fibonacci extension) to 0.6270 (38.2% Fibonacci extension) The 38.2% Fibonacci appears to be moving into resistance, with a move below the March low (0.6085) near the 0.6070 region (61.8% Fibonacci extension).
However, NZD/USD may face range bound conditions if it defends the most below the monthly level (0.6085), with a move lower from 0.6220 (50% Fibonacci extension) bringing the area from 0.6260 (38.2% Fibonacci extension). ) at 0.6270 (38.2% Fibonacci retracement).
By David Song, Strategist, FOREX.com » Official Site
David Song has over 15 years of experience trading instruments while researching early materials and stock indices. I reviewed macroeconomic policies under a visiting scholar at the Federal Reserve Bank of St. Louis while gaining a solid understanding of technical analysis from a former president of the Market Technicians Association.
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