- USD due for a technical correction.
- Upbeat US core PCE could yield boost USD.
- The NZD/USD chart looks toppy.
“Technically, the dollar is due for a bounce, but on a fundamental basis, there needs to be a catalyst”, says Kathy Lien from BK Asset Management.
As Analysts at ANZ writes, “the focus this week will be the FOMC, non-farm payrolls, end-month flows and continued trade/political talks, such as NAFTA developments.”
That said, the NZD/USD might witness a healthy correction even on the back of upbeat US core personal consumption expenditure (due at 13:30 GMT), given the last week’s toppy price action after dismal NZ Q4 CPI reading.
Short-term top in place at 0.7436?
Last Wednesday’s bearish pin bar candle, coupled with diverging RSI signals the spot may have found a short-term top at 0.7436 (bearish pin bar high).
NZD/USD Technical Levels
As of writing, the pair is trading at 0.7350 levels. A break below 0.7314 (Thursday’s low) would expose 0.7281 (23.6% Fib R of Nov-Jan rally) and 0.7267 (Jan. 22 low). On the other hand, a move above 0.7375 (previous day’s high) would open doors for re-test of 0.7392 (Jan. 25 high) and 0.7436 (Jan. 24 high).