After 8 consecutive days of growth, the price of NZD/USD is forming a bearish candle this morning, thereby indicating possible concerns among market participants at the beginning of a week full of important economic news:
→ On Wednesday, at 4:00 GMT+3, the RBNZ decision on interest rates will be published. There will also be a press conference by the leadership of the Central Bank.
→ On the same day, at 16:30 GMT+3, news about US GDP is expected.
→ On Thursday, at 16:30 GMT+3, inflation data in the United States will be published, namely Core PCE Price Index GMT+3.
Note that in 2023, the NZD/USD price behaved bearishly, forming a downward channel (shown in red).
Technical analysis of the NZD/USD price chart provides confirmation of bearish sentiment in the form of a test of the 0.62 level — which showed support in early January and now appears to be resisting.
If the news acts as a driver for downward momentum:
→ the price of NZD/USD may fall towards the trend line shown in black. It is enhanced by the psychological level of 0.61.
→ This could result in a strategic reversal downwards from the area where the upper border of the red channel lies.
Be prepared for spikes in volatility throughout the week.
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