I’m seeing a bearish divergence on NZD/USD forward of Powell’s speech at present.
Can the Fed head encourage one other greenback rally?
Earlier than shifting on, ICYMI, I’ve listed the potential financial catalysts that you’ll want to be careful for this week. Test them out earlier than you place your first trades at present!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Knowledge:
Equities within the inexperienced as Russia avoids a default
EU contemplating an embargo on Russian oil this week
Ukraine rejected Russia’s calls for to put down weapons in Mariupol
Missiles fired by Yemen’s Houthis on Saudi Arabia’s power and water services
New Zealand commerce deficit narrowed from 1.13B NZD to 0.38B NZD
U.Okay. Rightmove HPI down from 2.3% to 1.7%
New Zealand bank card spending rose by 1.0% vs. earlier 5.1% leap
ECB head Lagarde’s speech at 7:30 am GMT
Fed head Powell’s speech at 4:00 pm GMT
New Zealand Westpac client sentiment at 8:00 pm GMT
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: NZD/USD
NZD/USD 1-hour Foreign exchange Chart
Divergence alert!
NZD/USD has fashioned greater highs whereas Stochastic made decrease highs, making a bearish divergence seen on its hourly chart.
The oscillator has loads of room to go south, so the pair might comply with swimsuit whereas draw back momentum picks up. This is likely to be sufficient to take all of it the best way all the way down to the lows close to the .6750 minor psychological mark!
Nonetheless, the 100 SMA simply made a bullish crossover from the 200 SMA to recommend that the trail of least resistance is to the upside. These shifting averages may also maintain as dynamic assist across the .6850 space of curiosity.
All this might hinge on Fed head Powell‘s upcoming speech concerning the U.S. financial outlook within the Nationwide Affiliation for Enterprise Economics Annual Financial Coverage Convention.
Optimistic remarks might remind greenback bulls that the Fed is poised to hike rates of interest a number of extra occasions later this 12 months, which is likely to be sufficient to maintain the forex supported.
Then again, cautious feedback might solid doubts that the U.S. central financial institution can preserve tightening, which could imply some draw back for the scrilla.
