NZD/USD stuck in a rectangle pattern [Video]

NZDUSD gets rejected after claiming 50-day SMA.
But the decline meets strong support at 200-day SMA.
Oscillators remain in their negative territories.

Stefanos Oikonomidis XM

NZDUSD had been in a downtrend since its rejection at 0.6373, which is the 78.6% Fibonacci retracement of the 0.6536-0.5772 region. Despite the pair’s attempt for recovery and its temporary break above the 50-day simple moving average (SMA), it reversed back within its short-term sideways pattern.

Given that both the RSI and MACD are tilted to the downside, the price might drop below the 200-day SMA and challenge the 38.2% Fibo of 0.6064. Sliding beneath that floor, the pair could descend towards the 2024 bottom of 0.6037. A violation of that region could set the stage for the 23.6% Fibo of 0.5952.

On the flipside, should the pair rotate back higher, immediate resistance could be found at the 50.0% Fibo of 0.6154, which overlaps with the 50-day SMA. Conquering this barricade, the bulls may attack the recent rejection region of 0.6217. Further advances could then cease around the 61.8% Fibo of 0.6244.

Overall, despite the break above the 50-day SMA, NZDUSD reversed back within its rangebound structure as the 200-day SMA provided solid support. Hence, the consolidation phase is likely to resume and hold for as long as the SMAs hold their ground.

Author

Stefanos Oikonomidis

Stefanos joined XM as a Junior Investment Analyst in September 2021. He conducts daily market research on the currency, commodity and equity markets, from a fundamental and a technical perspective.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.