Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NZD/USD: testing the resistance
Information is not investment advice
The US dollar has exerted much pressure on the NZD lately and made the pair dive to the support of 200-MA above 0.72. However, the pair bounced and currently trades below 0.73 between 100-MA and 50-MA. The positioning of the MAs is a very convenient example of how you can use them for technical analysis and action planning.
- If NZD/USD crosses 50-MA and 0.73, that will likely mean that bulls are taking over, and 0.74 will be a mid-term target
- If NZD/USD crosses the support of 100-MA, it will likely aim at 200-MA below - that would mean the support of 0.72 may be threatened
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.