Tomasz Wisniewski
Axiory Global Ltd.
In today’s technical piece, I’d like to tell you about the NZD/USD, who is currently in a very interesting spot. Several more pips to the upside and we will get a proper, mid-term buy signal.
This optimism is stemming from the fact that the price created a huge inverse head and shoulders pattern (yellow). It is not active yet, as the price is still below the neckline (green). The neckline is the horizontal area around the 0.626 and the price breaking above that level will be a proper, mid-term signal to buy. Interestingly enough, the iH&S formation is bouncing off the 38,2% Fibonacci, which is a nice confirmation of bullish inclinations. This is the level where the most recent bearish correction might end.
To sum up, the price closing a day above the green area will be a signal to go long and, conversely, the price bouncing sharply off this level with a shooting star or a bearish engulfing will be a signal to go short.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
EUR/USD consolidates below 1.0850 amid upbeat mood
EUR/USD is easing below 1.0850 in the early European morning. Traders turn cautious, despite easing banking fears, as the focus shifts toward the euro area inflation data. The pair's pullback could be also attributed to a broad US Dollar rebound.
GBP/USD turns south toward 1.2300 as US Dollar rebounds
GBP/USD is heading back toward 1.2300, fading the Asian bounce in early Europe. Broad-based US Dollar rebound, despite a better market mood and sluggish US Treasury bond yields, is weighing on the pair. US housing data awaited.
Gold declines towards $1960 as USD rebounds ahead of Core PCE Price Index
Gold price is declining towards $1960.00 as investors are getting anxious ahead of US PCE inflation data. The reputation of Gold as a safe-haven amid US banking jitters has ebbed. On a broader note, Gold price is auctioning in a Symmetrical Triangle chart pattern.
“Cash out by next week,“ FDIC tells crypto depositors exposed to Signature bank- Here’s why
The Federal Deposit Insurance Corporation (FDIC) has asked crypto customers exposed to the defunct Signature bank to exit by next week, whether they have a new bank or not.
Market mood improves as banking fears ease
This week, financial markets will focus on key inflation figures from across the globe, speeches by Fed officials, and the US Senate hearings on SVB. Although some normality seems to be returning to markets, this could easily be disrupted by negative news.