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Kiwishort

Meanwhile In New Zealand....NZD/USD has failed to sustain the upside above 0.5800. While below 0.6010/0.6060, the downtrend is set to persist, economists at Société Générale report. “NZD/USD recently formed an interim low near the lower limit of a multi-month down sloping channel at 0.5565 which is also a trend line drawn since 2009.” “An initial bounce is taking shape; the 50 DMA near 0.6010/0.6060 which is also the low of July is expected to be an important hurdle near-term. Failure to overcome this resistance can lead to continuation in downtrend towards last month trough of 0.5565 and 2020 levels of 0.5495/0.5470.” Unlike the RBA yesterday, the Reserve Bank of New Zealand met expectations by raising its key rate by 50 points to 3.5%. Having started raising the rate a year ago, the RBNZ accelerated the move from 25 to 50 points in April, bringing it to the cyclical highs of 2014-15. The Reserve Bank cites too high core inflation (without food and energy) and labor shortages as reasons for further rate hikes. And here, it is worth remembering that at its peak in 2007/08, New Zealand's key rate reached 8.25%, and cyclical lows in 2002 and 2003 were 4.75% and 5.00%, respectively. In other words, the New Zealand economy is more suited to high rates than many.
Short
by xavierNF
4
Meanwhile In New Zealand PT2NZD/USD retreats from a nearly two-week high set earlier this Thursday amid fresh USD buying. Bets for more aggressive Fed rate hikes and elevated US bond yields continue to boost the buck. Recession fears weigh on investors’ sentiment and also exert pressure on the risk-sensitive kiwi. The NZD/USD pair struggles to find acceptance above the 0.5800 mark for the second successive day and retreats sharply from a nearly two-week high touched earlier this Thursday. The steady intraday slide extends through the mid-European session and drags spot prices to a fresh daily low, with bears eyeing a sustained break below the 0.5700 round figure. A combination of factors helps revive the US dollar demand, which, in turn, is exerting some downward pressure on the NZD/USD pair. Investors seem convinced that the Fed will stick to its aggressive policy tightening path to tame inflation and have been pricing in another supersized 75 bps rate increase in November. The bets were reaffirmed by the recent hawkish comments by several Fed officials, which remain supportive of elevated US Treasury bond yields and continue to act as a tailwind for the USD.
Short
by xavierNF
2
NZDUSD Head and shoulders 4-hour chartNZD is in key area, last candle in this chart as you can see closed below the 200 SMA. MACD signal and the cross of SMA-50 and SMA-100 with the formation of of head and shoulders, could be strong indicator for this pair to tumble well below the level of 0.71750. Fundamentals with the FED "talking about talking about tapering" with the U.S PMI flash came positive for the USD, weakened the NZD, but let's wait for the Monday New Zealand Retail and core Sales q/q. It is also worth to note that the monetary policy statement is due on 26th May Wednesday, but they already left it unchanged so it might keep the policy the same as last month.
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by Yousif_Mhmd
Short KiwiMight not have the best cypher pattern, but it is very close (it is off by 0.02-0.03 in both extentions, but spot on the retracement). We are at very crucial point as we are hitting multiple resistance lines around the 0.73 level. USD looks like it is going to continue its bull run and I think one of the best pairs to go Long USD is this one. Again we have an RSI divergence, volume is going down overall but sell volume is growing. Lots of news are coming out this week and I expect to have a clear view about the direction of the market by the end of the week. A break below 0.7236 would be a clear sell opportunity, but selling now or near 0.73 has the potential to win a few more pips.
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by BitcoinMacro