NZD/USD Price Analysis: Off lows by more than 250 pips

NZD/USD has recovered sharply from session lows.
The pair is still trading under the 2020 descending trendline.

Omkar Godbole FXStreet Contributor

The NZD/USD pair is currently trading near 0.6280, having hit a low of 0.6008 an hour ago.

The flash crash in USD/JPY seen during the sixty minutes to 02:00 GMT weighed heavily over the NZD, pushing the NZD/USD pair down to lows near 0.60. That level was last seen in May 2009. The AUD/USD pair also took a beating during that one hour and fell to an 11-year low of 0.6314.

However, despite the sharp recovery from session lows, it is still too early to call a bullish reversal in NZD/USD, as the pair is yet to take out the trendline falling from Dec. 31 and Jan. 24 highs.

A close above that hurdle would put the bulls into the driver's seat and could yield rise to 0.6480, where the 200-day average is currently located.

Should the bounce from session lows fade near 0.63, a fresh move lower toward 0.62 will likely be seen, as the risk-off tone in markets is showing no signs of weakening.

Daily chart

Trend: Bearish

Technical levels

1. R3 0.6472
2. R2 0.6422
3. R1 0.6391
PP 0.6341
1. S1 0.631
2. S2 0.626
3. S3 0.6229

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.