NZD/USD bulls move in at the start of the week but bears are lurking
- NZD/USD bulls move in for a deeper correction into the prior bearish impulse.
- As demand for safe haven increases, the bird would be expected to fall.
NZD/USD is up at the start of the week, higher by 0.14% having popped from a low of 0.6368 to a high of 0.6368 so far despite the market mood turning dark upon further reflection of last week's Federal Reserve meeting. The US Dollar climbed on Friday as risk appetite soured and investors weighed the prospect that the Fed and other central banks still had some way to go.
As analysts at ANZ Bank explained, ''the Fed may not be hiking as fast, but it still has the highest policy rate in the G10 and will be one of the few central banks to take policy past 5%.''
The other notable one is of course the Reserve Bank of New Zealand, the analysts said but explained that ''this remains a USD show, as we saw by the Kiwi’s failure to capitalise on bumper GDP data yesterday. We expect the next few weeks to be volatile, so buckle up (and enjoy the holidays!).''
Meanwhile, analysts at Rabobank said, ''we see scope for NZD/USD to drop back in the coming months as global growth slows and demand for safe haven increases but look for NZD/USD to move higher again on a 6 to 9-month view.''
NZD/USD technical analysis
As per the prior analysis, NZD/USD Price Analysis: Bulls move in from critical support, bears eye an opportunity, the bulls have moved in and this is giving the bears an opportunity of a discount:
NZD/USD prior analysis
The 4-hour time frame showed the price correcting towards the upside, in accordance to the daily chart analysis.
NZD/USD update
We have seen the correction into resistance and bears will be in anticipation of a bearish structure forming to leave against the prospect of a downside continuation.