NZDUSD, Daily
Cable has traded below 1.2300 for the first time since January-20, hitting target 1 from my post of February 6th for a gain of 164 pips. The pound is also trading at 12-day lows versus the euro, and GBPJPY has taken a tumble after earlier logging a three-session high. The underperformance follows a sub-forecast UK manufacturing PMI reading, which outweighed forecast beating mortgage and consumer lending data from the BoE. Cable has traded lower for four consecutive sessions now, breaching and closing below both the 20- and 50-day moving averages on the way. The 14-day relative strength index has also remained above the 30.0 “oversold” threshold, in theory suggesting that there may be more scope for the decline. There are more risks to the downside into next month’s commencement of exit negotiations between the UK and the EU and associated risk of a new Scottish independence referendum, target 2 remains at 1.2135.
The USD has been the strongest currency so far today following Presidents Trump’s State of the Union address and the not to be forgotten raft of hawkish Fedspeak yesterday. Principally the significance of NY Fed president Dudley and the often dovish SF president Williams becoming much more hawk like. The greenbacks rally today also helped the NZDUSD trade from February 9th also hit target 1 at 0.7120 for a gain of 95 pips, target 2 remains at 0.7020. The two long dollar trades had a total net gain of 259 pips.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.
Click HERE to register the next webinar will start in:[ujicountdown id=”Next Webinar” expire=”2017/03/02 13:00″ hide=”true” url=”” subscr=”” recurring=”” rectype=”second” repeats=””]
Stuart Cowell
Senior Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
