Daily FX Analysis — Currency Pairs React to Key Levels Amid Geopolitical Shifts
Introduction:
The provided content discusses recent developments in currency pairs in the foreign exchange market. It covers the NZD/USD pair’s decline due to downbeat consumer inflation in New Zealand and the potential impact of U.S. data. Additionally, it touches on the USD/CAD pair’s price recovery, the USD/CHF pair’s movements amid renewed USD demand, and the EUR/GBP pair’s response to UK wage inflation data. These insights provide a snapshot of the current market conditions for these currency pairs.
NZD/USD:
NZD/USD Declines To 0.5900 On Downbeat Kiwi Consumer Inflation, US Data Eyed.
NZD/USD reverses recent gains following weaker New Zealand economic data.
The Kiwi headline CPI (Q3) increased to 1.8% from the anticipated 2.0%; the annual rate decreased.
The US dollar could admire the improved US Treasury yields.
NZD/USD pulled back from the recent gains following the release of negative consumer inflation data from New Zealand, trading down around 0.5900 during the early European session on Tuesday.
The Reserve Bank of New Zealand (RBNZ) is expected to boost interest rates in November, but investors are being forced by the data to lower their expectations, which is driving down the NZD/USD pair.
Technical Overview:
Moving Averages:
Exponential:
- MA 5: 0.5908 | Negative Crossover | Bearish
- MA 20: 0.5942 | Negative Crossover | Bearish
- MA 50: 0.5955 | Negative Crossover | Bearish
Simple:
- MA 5: 0.5913 | Negative Crossover | Bearish
- MA 20: 0.5966 | Negative Crossover | Bearish
- MA 50: 0.5956| Negative Crossover | Bearish
RSI (Relative Strength Index): 38.3| Sell Zone | Bearish
Stochastic Oscillator: 13.47| Sell Zone | Negative
Resistance And Support Levels:
- R1: 0.5979| R2: 0.6067
- S1: 0.5883 | S2: 0.5791
Overall Sentiment: Bearish | Market Direction: Sell
Trade Suggestion: Stop Sell: 0.5859 | Take Profit: 0.5791 | Stop Loss: 0.5913
