NZD/USD spikes lower to extend its pullback [Video]

Stefanos Oikonomidis XM

NZDUSD had been steadily regaining ground after finding its feet at the 2023 low of 0.5984 in early June. However, the latest rebound faltered after challenging the upper boundary of the Ichimoku cloud, with the price reversing lower and dropping below both its 50- and 200-day simple moving averages (SMAs)

The momentum indicators currently suggest that the bearish forces are intensifying. Specifically, the RSI is retreating further below its 50-neutral mark, while the stochastic oscillator is sloping downwards near its 20-oversold zone.

If the selling interest intensifies, the pair could descend towards the March bottom of 0.6083. A drop beneath that region could pave the way for the 2023 low of 0.5984. Even lower, the 0.5815 hurdle could provide downside protection.

On the flipside, should the correction cease and the price edge back higher, immediate resistance could be met at the recent rejection region of 0.6246. Conquering this barricade, the bulls might aim for 0.6304 ahead of the four-month peak of 0.6383. Further advances could then cease at the 2023 high of 0.6536.

Overall, NZDUSD has been experiencing a significant pullback in the short term, while its retreat below both the 50- and 200-day SMAs is further darkening the technical outlook. Nevertheless, the decline could accelerate and the pair could revisit its 2023 lows in the case that it crosses below its March bottom.

Author

Stefanos Oikonomidis

Stefanos joined XM as a Junior Investment Analyst in September 2021. He conducts daily market research on the currency, commodity and equity markets, from a fundamental and a technical perspective.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.