NZD/USD: bears in control, aiming for 0.7105 on break out

NZD/USD: stuck in a consolidative range awaiting a catalyst.
NZD/USD: technicals lean bearish, eyes on 0.7105 lows.

Ross J Burland FXStreet

NZD/USD has been trading in a consolidative range between 0.7105 and a high of 0.7131. Currently, NZD/USD is trading at 0.7118, down -0.41% on the day, having posted a daily high at 0.7160 and low at 0.7106.

The bird opened the New York session at 0.7120 but came under pressure early in the day, capped by the descending 21-hr SMA as US 10- years rallied to touch the 3.00% mark boosting the greenback higher within its recent resurgence that has weighed on commodity-FX.

Risk sours, dollar drops but Kiwi can't catch a sustained bid

However, risk soured on Tuesday and Wall Street's benchmarks dropped below support levels, at the same time, the Kiwi bounced as the dollar and yields fell back but the bird was unable to gather momentum as the yen strengthened and NNZ/JPY anchors NZD/USD. There is no major data or event risk for the Kiwi in Asia today.

NZD/USD levels

Technicals lean bearish after a new low was set with the RSIs biased down and with an inverted hammer on the monthly sticks. The bears can target a break of 0.7105 down to 0.7070 before 0.7030. To the upside, the 100-D SMA is located at 0.7220.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.