TRADING SPOTLIGHT

Pay attention to NZDUSD

What happened earlier

NZDUSD declined towards 0.68400 because the U.S. dollar rose to a nine-month high versus the New Zealand currency. The greenback’s surge that happened after Fed minutes showed that the policymakers mostly agreed on starting a stimulus taper this year.

What the picture is now

The Bollinger Bands indicate moderate volatility and show bearish sentiment. The RSI, which is under 50, displays a prevailing downtrend while the Stochastic suggests a possible upwards correction.

What the possible outcomes are

• In our most likely scenario, the NZDUSD pair may experience a downwards correction towards the first support level of 0.68339.
• If the pair falls below the first support level, we can expect a continued downtrend towards the second support level of 0.67904.
• Contrarily, the pair may rise towards the first resistance level of 0.68874.
• If the pair surpasses the first resistance level, we should expect a continued surge towards the second resistance level of 0.69479.

Stay aware of the XBRUSD movement

What happened earlier

XBRUSD fell to 66.71 as oil prices dramatically declined on investors’ fears about a fuel demand drop while COVID-19 cases surge worldwide. Several countries have re-introduced travel restrictions, and air traffic has softened in recent weeks. According to U.S. Energy Department figures, U.S. crude inventories fell from 3.2 million barrels last week to 435.5 million barrels, their lowest since January 2020.

What the picture is now

The widely spread Bollinger Bands sugest increased volatility. The RSI, close to 20, and the Stochastic indicate a possible upward correction with a prevailing downtrend.

What the possible outcomes are

• In the most likely scenario, the XBRUSD pair may challenge the first support level of 66.71.
• If the pair falls below the first support level, we can expect a further decline to the second support level of 65.81.
• Contrarily, the pair may rise towards the first resistance level of 67.91.
• If the pair surpasses the first resistance level, we should expect a continued surge towards the second resistance level of 69.49.

Please note! This is not a direct instruction on which order to open. When applying this information, you remain solely responsible for the decision you make and financial risks you take.