NZDUSD defends yearly lows and undergoes the bullish correction

Tomasz Wisniewski Axiory Global Ltd.

It is the time again to write about the NZDUSD as the price made some significant movements that were expected by us in our previous analysis. About the Kiwi we wrote on the 27th of November, when the price was still inside of the tight range. That time, we mentioned:

“All that together is giving us an interesting buy signal. We are not talking about the reversal of the main long-term trend here but at least about the mid-term bullish correction. Positive sentiment will be denied once the price will come back below the orange area [0.682] but currently it is less likely to happen. “

In the last few days, NZDUSD was trading very technically. The price tested the 0.682 support (yellow) and went higher. The breakout of the lower line of the triangle (green) was not significant, especially for sellers and even when it was, it was fake and was actually a strong buy signal. After the price touched the 0.682 support, we had only bullish days on this pair (four so far). During that upswing, we broke the upper line of the triangle, which in the same time played the role of the neckline. Technically that is a bullish trigger.

The buy signal is on then, the iH&S pattern is active and the positive sentiment towards the NZD is present. That being said, we should look for the potential target of the current upswing. In my opinion the price should aim the blue area, which is a strong resistance created by the combination of the October's support and the long-term (since 2015) up trendline, which was broken few weeks ago. To this area we do have 110 pips, which makes it an interesting mid-term trading opportunity.

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.