The NZDUSD price continues to move higher as USD weakness remains. Could the price continue higher or are we approaching key resistance?
Watch the video to learn more…
The NZDUSD price continues to move higher in line with the strength meter this week. The USD remains weak after the Federal Reserve Chairman highlighted the Fed will slow the pace of rate hikes in the December meeting. However, although the market is seeing this as a dovish move it is actually just less hawkish as they are still tightening monetary policy to fight the inflation rate. They have stressed that if inflation fails to fall they will act aggressively again which could cause the USD to strengthen significantly.
The price of NZDUSD continues its upward trend heading towards the major resistance level of 0.6450. In the week ahead analysis video we highlighted the level of 0.6150 as an area of interest for the price to move higher from. Price has rallied over 250 pips from this level in the direction of the major resistance. On the 4hr chart we can see that the price could form a similar pattern again and retest the previous highs at 0.6280. If we see a retest with bullish price action we could look for short term opportunities into the 0.6450 level.
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