NZD/USD Price Analysis: Pair soared and approaches 20-day SMA

NZD/USD soared 1.02% to trade near 0.5895.
The pair approached the 20-day SMA at around 0.5910, seemingly continuing its recovery.

Patricio Martín FXStreet

The NZD/USD rose by 1.02% to trade near 0.5895 in Wednesday's session, continuing its recovery and approaching the 20-day Simple Moving Average (SMA) at around 0.5910. The Relative Strength Index (RSI) indicates that buying pressure is recovering, while the Moving Average Convergence Divergence (MACD) shows that selling pressure is flat, which prints signs of a recovering buying momentum.

Should the pair breach the 20-day SMA, the outlook may improve further potentially targeting the 0.6000 area. On the downside, bears might invalidate the recovery if they regain the 0.5800 area and push the pair back below yearly lows. In addition, traders shouldn’t take their eyes of the looming bearish crossover between the 100 and 200-day SMA at around 0.6070 area which could give arguments to the bearish rhetoric.

NZD/USD daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.