The pair is up 0.11% on the day after touching a significant resistance level as investors doubt that lawmakers will give any insight on the potential rate hikes in the December. On the other hand, New Zealand will be hiking rates and investors have been pricing in what could be up to a 50 bp raise in 2022.
I think it's more likely that we see an increase of demand on the kiwi when looking at the pair from a fundamental and technical standpoint for both the long and short term. Going into next year, the kiwi seems much stronger especially since the pound has been underperforming compared to other currencies. The pound hit a December 2020 low and is continuing to depreciate.
Price came up to hit the top of a falling trend line in a downward channel on the 1D chart which was also matched with resistance at the 50 DMA. Rejection on the latest 1D candle indicates a potential turn to the downside which could take the pair down to the 1.91500s range.
12/2/2021 US equities fell 5% from the highs after fears of a new coronavirus variant emerged and the first case was recorded in the US. SPX500 is up .10% on the day at the time of writing this. Our outlook The new omicron variant is definitely concerning most investors right now as the US will […]
Check out my previous G/U deep dive from early October here to see how we have progressed... Technical Outlook: Price has mainly been travelling in channels throughout the past year. As we saw the ascending channel formed post-Covid last year, price began retesting all previous key horizontal levels. Over the past couple of months, price has […]
11/30/2021 Gold price rose 0.59% on the day at the time of writing this in light of the uncertainty surrounding the Fed's policy towards the new variant and tapering of asset purchases. Our outlook I think gold will likely see some green today as the virus concerns can cause a slow in growth since the […]