Comprehensive NZD/USD Analysis for January 23, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the NZD/USD for 23rd January 2024. 

NZD/USD Key Takeaways

• Expectations have faded: Economic data released by the United States last week showed that U.S. price levels may remain high. Previous expectations of an interest rate cut in March may have been too aggressive. At the same time, several members of the Federal Reserve poured cold water on the market. Short-term US dollar sellers retreated and ushered in a rebound and appreciation. 
• The inflation is stubborn: At the end of last year, New Zealand Federal Reserve Chairman Orr said that although New Zealand’s neutral interest rate has reached 2.5%, core inflation is still too high. Short-term monetary policy will not change, but unexpectedly sluggish economic growth in the third quarter of 2023 may allow the New York Fed to cut interest rates before this fall. 

NZD/USD Technical Analysis

NZD/USD Daily Chart Insights

• Stochastic Oscillator: The indicator enters the oversold area and begins to struggle, suggesting that the current short power may subside and be wary of a rebound in the trend. 
• Price Action: The exchange rate formed two consecutive doji bars below the green 240-day moving average, and then the price fell below the doji low yesterday. This means that the bears once again have the upper hand, and the probability of the exchange rate continuing to fall today increases. 

NZD/USD 1-hour Chart Analysis

• Stochastic Oscillator: The oversold area of the indicator sends a bull signal, suggesting that the exchange rate may face a rebound or consolidation during the Asian session. Wait for another short signal and then focus on selling opportunities. 
• Flag-shaped range: The exchange rate began to rebound since last Wednesday, forming a flag-shaped range around the blue 17-period moving average. After the exchange rate falls below the range, it may fall back to the range and the 17-period moving average. 

Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 0.6088, 
• Bullish Scenario: Bullish sentiment prevails above 0.6088, first target 0.6107, second target 0.6117; 
• Bearish Outlook: In a bearish scenario below 0.6088, first target 0.6049, second target 0.6039. 

Conclusion