NZD/USD Technical Analysis: Bulls target immediate resistance trendline after China data

NZD/USD stops the previous day’s declines after China’s upbeat inflation data.
An upside clearance of the adjacent resistance line can refresh a four-month high.
Sellers await a downside break of the one-week-old rising channel.

Anil Panchal FXStreet

NZD/USD takes the bids to 0.6560 after China released November month inflation data on early Tuesday.

Not only headlines Consumer Price Index (CPI) but the Producer Price Index (PPI) also beat market consensus while flashing 4.5% and -1.4% respective figures on a yearly basis.

Read: China CPI a touch hotter than expected 4.5% vs 4.2% exp YoY

With this, the kiwi pair aims to challenge the immediate falling resistance line, at 0.6565, in order to register a fresh high beyond August month’s top, flashed recently, around 0.6590. In doing so, 0.6600 and late-July top close to 0.6640 will be in the focus.

Alternatively, pair’s declines below a two-week-old rising trend channel's support, near 0.6528, can trigger fresh selling towards 0.6490 and 61.8% Fibonacci retracement of November 25 to December 06 upside, at 0.6463.

NZD/USD four-hour chart

Trend: Bullish

additional important levels

Overview
Today last price	0.6558
Today Daily Change	5 pips
Today Daily Change %	0.08%
Today daily open	0.6553

Trends
Daily SMA20	0.6444
Daily SMA50	0.6385
Daily SMA100	0.6404
Daily SMA200	0.654

Levels
Previous Daily High	0.6568
Previous Daily Low	0.6548
Previous Weekly High	0.6576
Previous Weekly Low	0.6424
Previous Monthly High	0.6466
Previous Monthly Low	0.6321
Daily Fibonacci 38.2%	0.6556
Daily Fibonacci 61.8%	0.656
Daily Pivot Point S1	0.6545
Daily Pivot Point S2	0.6536
Daily Pivot Point S3	0.6525
Daily Pivot Point R1	0.6565
Daily Pivot Point R2	0.6576
Daily Pivot Point R3	0.6585

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.