NZD/USD rallies on oil inventories

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    NZD/USD is up and testing the vicinity of yesterday's highs and the resistance of the sideways channel. The dollar is on the back foot vs the antipodeans only while oil is making a comeback to $29bbls WTI as US oil production is down 0.3% w/w and down 0.4% y/y with EIA US weekly oil inventories that were -754k vs + 2850k expected.

    Meanwhile, Yellen explained that uncertainty over China has raised concerns over the global outlook, but explained that consumer spending and global economic growth will pick up and against this backdrop, the Fed expects to raise rates at a gradual pace. We are no clearer on the outlook for the US economy and it is back to the drawing board while the Fed still remains committed to raising rates as the 2% objective is still regarded as achievable in the medium term.

    NZD/USD levels

    Technically, the 100 sma on the hourly chart remains a tough-nut to crack. This is at 0.6648 today. The high has been 0.6671. To the downside, the 50 sma on the hourly sticks come as 0.6624. Below there, the 200 sma comes at 0.6595 on the same time frame. 0.6550 could be a strong level of support. On the upside, the target comes as 0.6720/50. Spot trades above the pivot of 0.6620 with R3 at 0.6784. Daily RSI is neutral at 53.
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