Today's focus is on NZDUSD, where we're observing a potential selling opportunity around the 0.60400 zone. After trading in an uptrend, NZDUSD recently experienced a breakout and is now undergoing a correction phase, edging towards the retrace area near the 0.60400 support and resistance zone.
Expanding on our analysis, let's consider the fundamental landscape. Inflation data plays a crucial role in shaping market sentiment, and recent CPI figures highlight significant trends. Comparing recent Consumer Price Index (CPI) data reveals:
Mar 12, 2024: 0.4% Feb 13, 2024: 0.4% Jan 11, 2024: 0.3% Dec 12, 2023: 0.3% Nov 14, 2023: 0.2% Moreover, yesterday's CPI release for April 10th reported a robust year-over-year increase of 3.5% in March, exceeding expectations and driven by upticks in housing and gasoline costs. This uptick in inflation can potentially impact currency pairs like NZDUSD, as it may prompt expectations of tighter monetary policy to combat inflation, consequently exerting downward pressure on the New Zealand dollar.
As we navigate today's trading session, it's essential to integrate both technical and fundamental analysis. The potential selling opportunity in NZDUSD at 0.60400 aligns with the broader correction phase and the impact of inflation data on currency dynamics.
Trade wisely, Joe
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The price felt massively before the mentioned resistance. i will be watching it close to market price next week at 0.59700 resistance area
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as the situation escalates in middle a gap is expected at market open
The resistance zone looks solid, as the price has respected it multiple times in the past. I suspect the price might be below the 50% Fibonacci retracement, which is a good sign of bearish momentum entering the market. Let's see how the price reacts to the level as it approaches.