Rise of NZD, dovish Fed, and stocks indices' sell-off

Rise of NZD, dovish Fed, and stocks indices' sell-off

Watch our new video!

Latest news

  • Stock indices S&P 500 and Nasdaq are falling for seven days in a row. Yesterday, US benchmarks started rebounding their losses and were heading to close green, but at the end of the day plunged on concerns that the stock valuations are too high.
  • Fed’s Powell held a meeting yesterday and said that the central bank wouldn’t tight its easing policy anytime soon. Besides he mentioned that higher bond yields reflected economic optimism, not inflation fears, giving investors more confidence to go long on riskier assets.
  • The Reserve Bank of New Zealand on Wednesday left its rates and bond-buying at the same level. The New Zealand dollar skyrocketed to almost two-years highs.
  • Other riskier currencies the aussie and pound surged to their highest levels since early 2018, while the safe-haven Japanese yen plunged.

Technical analysis

EUR/USD has dropped back to the 50% Fibonacci level at 1.2150 after breaking it. It should be just a natural sell-off ahead of the further rally up to the 61.8% Fibo level at 1.2200. EU speeds up vaccinations, so it may help the euro to rise. Support levels are at the recent lows of 1.2100 and 1.2030.

EURUSDDaily.png

GBP/USD has broken the ceiling of the channel established in November. The way up to the next resistance at 1.4250 is clear now. However, the RSI indicator in combination with the Bollinger Bands point to the overbought zone. Thus, we could see a drop to the recent low of 1.4050 soon. The next support will be at 1.4000.

GBPUSDH4.png

USD/JPY has approached the 200-day moving average of 105.50. If it manages to break it, the way up to the next round number of 106.00 will be open. Support levels are Monday’s low of 105.00 and the low of February 9 at 104.50.

USDJPYDaily.png

NZD/USD is heading to 0.7400. If it manages to break it, the way up to the next round number of 0.7500 will be clear. In fact, if we look at the monthly chart, we’d notice that 0.7500 is a key level that was support, but now plays as a resistance. Since the price retraced back to this level, it is likely to reverse down. Support levels are 0.7150 and 0.7000.

NZDUSDMonthly.png

TRADE NOW

Similar

Key Forex Event: US Inflation Rate
Key Forex Event: US Inflation Rate

The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.

Latest news

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera