Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NZD/USD: long-term perspectives
Information is not investment advice
If there is a support to be found, that’s right here: in the channel 0.7000 – 0.7010. NZD/USD bounced from it not once during the last six weeks, every time going further into the upside. This logic suggests that what we are seeing now is a downswing that may touch 0.70 before launching the price back upwards again, going beyond 0.7160. Is that possible?
Hypothetically, yes. The last monthly candles are not the longest ones in the history of NZD/USD over the last 20 years. The fundamental layout has many factors in favor of the weakening of the US dollar – from the Fed’s low-interest-rate monetary policy line to the general loss of interest to the greenback among global investors. Therefore, the US dollar may indeed lose further ground allowing NZD/USD to make further gains in the upside. 0.75 would be the strategic resistance to look at, in the first place – who knows, very possibly, it will be reached in 2021 in a similar manner to the transition from 0.63 to 0.70 in 2015-2016. A stronger move upwards is rather unlikely, therefore, 0.75 seems a realistic upside scenario for the year 2021. Otherwise, 0.63 would be a ground for the performance of NZD/USD in the long-run.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.