empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

18.01.201910:43 Forex Analysis & Reviews: Fundamental Analysis of NZD/USD for January 18, 2019

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

NZD/USD has been quite volatile and bearish recently while residing above 0.6700 area with a daily close. NZD has been struggling to regain momentum over USD whereas US positive economic reports provided USD with support.

NZD has been quite impressive with the recent counter-move against USD but recently could not sustain the impulsiveness it had earlier when trading above 0.6700. December's New House Sales report was published with the sharpest decrease in the recent seven years. This undermined NZD in the pair. This week NZD was quite positive with the economic reports, but it did not quite help the currency to gain momentum. Today Business NZ Manufacturing Index report was published with an increase to 55.1 from the previous figure of 53.7, which helped the currency to establish certain bullish counter-move in the pair but it is expected to be short-lived. On the other hand, USD is likely to maintain momentum in the coming days. As NZD investors are currently waiting for the US-China efficient trade deal. If the deal is concluded, NZD is going to pick up steam in the hsort term after weakness.

On the other hand, USD has been quite optimistic and positive with the recent economic events and reports which helped the currency to sustain the bearish pressure in the pair. Citing FED's Quarles, inflation is very well contained and data on the domestic economy is also quite positive. Solid fundamentals are sure to prop up the economy in the medium term. After raising the interest rate 4 times last year, this year FED Chair Powell is going to take a patient approach with at least of 2 rate hikes which are currently being discussed. According to FED's official Charles Evans, a pause in rate hike is crucial amid looming uncertainty. Recently Philly FED Manufacturing Index report was published with a significant increase to 17.0 from the previous figure of 9.4 which was expected to be at 9.7 and Unemployment Claims report was published with a positive result of a decrease to 213k from the previous figure of 216k which was expected to increase to 219k.

Meantime, USD is expected to dominate NZD further in the coming days. Any soft economic report from the US will provide grounds the bullish momentum again in the future.

Now let us look at the technical view. The price is currently heading towards 0.6700 area after a breach below the dynamic level of 20 EMA. As of the current price structure, the price is expected to move lower towards 0.67. If any bearish rejection with a daily close is observed, certain bullish pressure towards 0.70 is expected in the future. As the price remains above 0.6700 area, the bullish bias is expected to continue.

SUPPORT: 0.6500, 0.6700

RESISTANCE: 0.6850, 0.6950, 0.70

BIAS: BULLISH

MOMENTUM: VOLATILE

Exchange Rates 18.01.2019 analysis

InstaForex Analyst
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off