AUDUSD Analysis: Sideways Move Continues, Resistance and Support Levels
The AUDUSD pair has been moving sideways within a trading range between 0.6521 and 0.6594.
As long as the 0.6521 support level holds, the pullback from 0.6594 could be seen as corrective consolidation for the uptrend from 0.6442. Another rise is still possible after the consolidation.
The initial resistance level is located at 0.6555. A breakthrough of this level could trigger another rise to test the 0.6594 resistance level. A breakthrough of this level would aim for the 0.6624 resistance level.
On the downside, a breakdown below the 0.6521 support level would indicate that the upside move has already completed at 0.6594. In this case, another fall towards the 0.6442 previous low could be seen.
NZDUSD: This is an earlier recap
NZD witnesses a quick decline as we approach this week’s central bank decision & press conference.📉
NZD falls 0.50% within the first three hours of trading and 0.65% against GBP. Investors voice concern over the struggling New Zealand economy while inflation remains higher than other regions Economists advise RBNZ to opt for a “harsh” landing scenario to bring inflation down to its 2% target.
28 Feb 2024 Wed 2:00pm. February Monetary Policy Statement and Official Cash Rate (OCR) Details.
See our Economic Calendar
NZDUSD 1-hour chart
Blue lines dominate, indicating risk on the downside.
Key support is clear at .6156-61, which needs to hold to prevent a further push to the downside. Should the support zone give way then .6150 (psychological) and .6128 are next.
On the upside, .6200 is the key resistance, minor at .6185 ahead of it.
Underperformers
NZDUSD and AUDUSD were the underperformers today,
the promise ?
–
A shutdown is approaching. Biden and Johnson’s lack of relationship isn’t helping.
https://www.politico.com/news/2024/02/26/biden-johnson-government-funding-ukraine-00143206
of course !
–
Policymakers are particularly focused on labor costs as a key driver of medium-term inflation. While pressure on negotiated wages eased at the end of 2023, a new forward-looking indicator signals elevated salaries aren’t yet at an inflection point.
Lagarde said last week that slower pay growth in the fourth quarter was “encouraging,” but that bargaining rounds in the following period will be vital for decision-making on rates.
ahhhh yess !
–
Lagarde said wage pressures remain strong, reiterating that salaries will likely become an increasingly important driver of price dynamics in the coming quarters.
“The current disinflationary process is expected to continue,” Lagarde said Monday at a plenary debate on the ECB’s 2022 annual report. “But the Governing Council needs to be confident that it will lead us sustainably to our 2% target.”
IF you must …
–
MEPs set to debate inflation and possible interest rate cuts with ECB President
https://www.europarl.europa.eu/news/en/agenda/briefing/2024-02-26/16/meps-set-to-debate-inflation-and-possible-interest-rate-cuts-with-ecb-president
Inflation, efforts to curb it, and possible interest rate cuts are set to be the focus of a debate with European Central Bank President Christine Lagarde on Monday afternoon.
For those of us who like to play around a bit with crosses, Nok/Jpy moves a little slower than other pairs and appears to be targeting 14.35 again. Bias has been decidedly buy side in the prior 10 days, any declines have not pierced outer range pivots but have been compromising upside key value areas and, 14.35 is one of them. Any price activity from 14.32 is likely to pull back today/overnight in our model.
© 2024 Global View