NZD/USD is consolidating after breaking a technical support!
Will today’s headlines inspire a directional move for the pair?
Before moving on, ICYMI, yesterday’s watchlist considered a potential bullish reversal for GBP/USD ahead of the Fed’s meeting minutes. 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:
FOMC meeting minutes showed “a few” participants favored 50bps rate hike
China reports magnitude 7.2 earthquake near border with Tajikistan
Japan’s markets out on Emperor’s birthday holiday
RBNZ Gov Orr: “It would take a significant upside inflation shock from where we are” to put 75bps rate hikes back on the table
Bank of Korea pauses its tightening campaign, upgrades GDP and downgrades inflation forecasts
Morgan Stanley ups 2023 oil demand growth estimate by 36%, flags Russia risk
European shares open higher as Nvidia forecast boosts chip stocks
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s final CPI at 10:00 am GMT
U.K.’s CBI realized sales at 11:00 am GMT
U.S. preliminary GDP at 1:30 pm GMT
U.S. EIA crude oil inventories at 4:00 pm GMT
GfK consumer confidence at 12:01 am GMT (Feb 24)
Incoming BOJ Governor Ueda to give a speech during the Asian session
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: NZD/USD
I don’t know if you noticed but NZD/USD broke below the .6275 short-term support earlier this week.
What makes the 1-hour chart interesting today is that the candlesticks are consolidating inside a symmetrical triangle pattern on the chart.
NZD/USD is not quite at the triangle support yet, but price trading below the 100 SMA and Stochastic pointing downwards after exiting its “overbought” conditions opens the door to further selling.
I’ll be watching the .6220 triangle support zone for bullish opportunities.
If markets react to today’s U.S. preliminary GDP reports by pricing in decent growth even amidst the Fed’s rate hikes, then NZD/USD could bounce from its intraday lows to retest the triangle’s resistance.
But if today’s headlines result in risk aversion or further USD-buying, then NZD/USD could break its triangle support and revisit areas of interest like .6200 or .6190.
