How is the NZDUSD pair trading today in Asia? Get insight on this from the latest 22 February NZDUSD Technical Outlook as it provides you with the necessary guidance.
22 February, GKFX – The American dollar surged across the board as the 10-year treasury yield rose to 2.96 percent after the Fed minutes release.
January Fed meeting
The uptick in the yields also weighed over the US stock markets. The Dow dropped more than 400 points in the last 2 hours of NY trade, and as of writing, the futures are reporting a drop of 0.20 percent or 48 points. Amid broad-based USD strength and risk aversion in the stocks, NZD/USD fell from 0.7386 to an eight-day low of 0.7307.
The minutes of the January Fed meeting revealed that many policymakers believe the stronger growth has increased the chance of future rate hikes. These positive comments seem to have put a bid under the USD, indicating the investors have begun repricing a more hawkish Fed.
That said, most in the markets do not expect the Fed to shift from three to four hikes this year in its median outlook. As of writing, the spot is trading largely unchanged on the day at 0.7318.
22 February NZDUSD Technical Outlook
Previous day’s bearish outside day candle adds credence to the argument that the pair has topped out at 0.7437 (Feb. 16 high). So, the pair could break below 0.73 (psychological level) and extend losses to 0.7222 (upward sloping 50-day MA) and 0.72 (zero levels).
On the higher side, breach of resistance at 0.7330 (10-day MA) would open up upside towards 0.7386 (previous day’s high) and 0.74 (psychological resistance).
This article 22 February NZDUSD Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.