NZD/USD: starts out with a bearish bias on charts, nevermind Syria
|
- NZD/USD: a bear engulfing candle formed, where next?
- NZD/USD shrugs off ME tensions, risk-on supporting early.
NZD/USD is starting out the week in a narrow range of a handful of pips so far, despite an offer in gold and risk on stock prices with the S&P bid up with an opening gap on the charts. Currently, NZD/USD is trading at 0.7350 with a high of 0.7355 and a low of 0.7347 in a risk-on market.
Risk tone: well, so far so good, just another attack on Syria, market moves on . . .
Traders were braced for a potential risk-off start to the week considering the escalating tensions in the ME and political concerns in the White House. However, there seems to be an off-set here with better-looking trade outlooks instead. (China GDP is up this week as first key data catalyst).
A hard environment for the Kiwi
"An escalation in geopolitical tensions is likely to limit the upside moves in the NZD, at least early this week," analysts at ANZ argued, adding, "however, with it becoming clear that we are entering a softer global growth environment, on top of the lift in volatility we have already seen, we are still of the view that it is becoming a harder environment for cyclical currencies, like NZD."
NZD/USD levels
On the daily sticks, bear engulfing candle formed at the close of business last week with the RSI diverging from the new short-term high and price well below the 0.7440 mark, (16th Feb highs). To the downside, the key target is the 0.7180 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.