New Zealand's currency has been on a tear after their recent announcement of rate hikes which has sent investors into a buying frenzy trying to price in the future value of the kiwi after a potential 25 bp rate hike on the 24th of this month.
On top of this high outlook from analysts, we are also seeing more demand from institutions. COT data reported a considerable spike in long futures contracts bought by big money last week which was then followed by a drop in price towards the end of the week. With COT on the buyers' side, I think we can see another run higher as we go into the last couple months of the year.
This pair looks like it tried to come back up to resistance around 1.64873 but the momentum was too weak. If price does end up hitting that level, it could be a promising short setup.
NZDUSD looks like a promising long on the 1D chart as price hit support at .70900s and is starting to bounce from that level. Price also touched its 200 DMA on this timeframe which served as strong support on this pullback. Higher highs also suggest further moves upward to potentially the June highs.
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 […]