I see a steady bullish trend on the NZD/USD short-term time frame!
will Release of US Consumer Price Index for April Shake things up a bit?
As you can see from the chart below, the pair is already hanging out at the bottom of its ascending channel, and may be considering a breakout.
If that happens, the NZD/USD could be in for a quick reversal, so it’s best to keep your eyes on these levels.
Forex NZD/USD for 15 minutes Planned by TV
Support is currently being tested around the minor psychological mark of .6350, near the dynamic inflection points of the moving averages.
A break below this could trigger a drop to the next area of interest around the 0.6300 handle or all the way to resistance-turned-support at 0.6250.
Technical indicators point to a possible crash as well.
The 100 SMA is in the middle of a bearish MA crossover from the 200 SMA, and that could attract stronger selling pressure.
At the same time, Stochastic is starting to head south from the overbought area, so price may follow suit as bearish sentiment returns.
Uncle Sam expects a rebound in price pressures, as headline inflation could accelerate from 0.1% m/m in March to an increase of 0.4% in April.
After all, crude oil and other energy commodity prices have been on the rise for most of the past month, and that will likely translate into higher consumer inflation.
If this is the case or if the actual numbers are much stronger than expected, market players could revive hopes of a rate hike from the Fed. Mind you, Fed Chair Powell mentioned that they haven’t even talked about pausing yet!
Planning to short sell to break even less? Just be sure to account Average daily fluctuations for NZD/USD About 60 pips when specifying the entrances and exits.
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