I’ve got a textbook retracement play on my radar for today!
Can NZD/USD find buyers at the rising trend line and area of interest?
Before moving on, ICYMI, yesterday’s watchlist looked at AUD/CAD for a retest opportunity. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. government announces embargo on Russian oil and gas
U.S. threatens to shut down Chinese firms defying action on Russia
OPEC Secretary General Barkindo assures there is no shortage of oil
Saudi Arabia and UAE refrain from easing oil prices unless U.S. helps them in Yemen
Venezuela releases two U.S. hostages, hinting at progress to get sanctions lifted
Australian PM Morrison to declare national emergency due to flooding
Chinese headline CPI up by 0.9% as expected
Chinese producer prices rose 8.8% vs. 8.5% forecast, 9.1% previous
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. JOLTS job openings at 3:00 pm GMT
U.S. EIA crude oil inventories at 3:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: NZD/USD
There’s not much in the way of top-tier data releases in the coming session, leaving traders to stay glued to the headlines on Russia.
So far, the latest shot fired from the U.S. is their decision to embargo Russian oil and gas, which might mean another leg higher for crude oil prices.
In turn, this could translate to higher commodity prices overall, which appears to be propping commodity currencies like the Kiwi recently. Some even say that the sanctions being imposed by the U.S. could backfire on its own economy soon.
With that, NZD/USD might be able to find more buyers at the retracement levels near its short-term ascending trend line. This happens to be in line with the area of interest at the .6750 minor psychological mark.
Besides, technical indicators are hinting at a continuation of the climb, with the 100 SMA above the 200 SMA and Stochastic pulling higher. A shallow pullback might even find buyers at the 50% Fib, which coincides with the 200 SMA dynamic support.
If any of the support levels hold, NZD/USD could resume the rally to the swing high just slightly past the .6900 handle.
