NZD/USD Forecast: Slams into Resistance

The market expected the CPI to come out, and because it gave the market exactly what the market expected, it read that maybe the Fed is getting a little more aggressive with monetary tightening, but at this point I think it’s very unlikely that much has changed. NZD/USD was all over the place during the session on Thursday as we continue to see a lot of noisy behavior. At this point, the market has been both bearish and bullish, but the 0.6 level seems to continue to show importance. The market expected the CPI to come out, and because it gave the market exactly what the market expected, it read that maybe the Fed is getting a little more aggressive with monetary tightening, but at this point I think it’s very unlikely that much has changed. However, some have bet that the Federal Reserve will raise interest rates by only 25 basis points instead of the feared 50 basis points. Advertisement image Take advantage of today’s market TRADE NOW Looking at this chart, it is clear that there is major resistance between the 0.6 and 0.65 levels, so the fact that we stayed there is probably not a coincidence. We hit it for a while and it seemed like the US dollar went quiet. The euro rose to a new high, but the New Zealand dollar did not follow. This is an interesting turn of events as it could indicate that the NZD is lagging other currencies. NZD would be the first to sell if we get a reversal. If that happens, it’s clear that maybe NZD will be the first to sell if we get a reversal. After all, if it couldn’t track right with Arrow and Aussie, then something isn’t quite right. Another possibility is to see that if the euro really starts to rise, it is possible that the New Zealand dollar will have to catch up. It’s a little early to call, but I would say that staying where we are actually leaves enough doubt in the market. This is great because one thing we needed after the last 2 months in the forex market was a lot more uncertainty. After all, we haven’t had clarity for ages when businessmen are still beating each other up over the idea that Uncle Jerome is going to liquidate everything.

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