Sentiment remained bearish for most of the risk assets, pushing the NZDUSD pair below 0.67 for the first time since November 2020.

Stock markets dived yet again, benefiting the USD as the safe-haven currency. Breaking below December lows of 0.67 confirmed the medium-term bearish trend, with the 0.67 level as the main resistance. As long as the Kiwi trades below it, the outlook appears bearish.

If the negative momentum persists, we could see a quick decline toward 0.66 this week. 

Alternatively, the pair must climb above the 0.67 resistance to cancel the immediate downtrend. In that scenario, a relief rally could bring the pair to 0.6780.

This week’s Fed decision could bring a hawkish confirmation that the Fed is ready to raise rates in March, while the balance sheet reduction could start soon after that. Therefore, the USD might continue in its bullish momentum heading into the decision.

On the other hand, considering the recent sell-off in stocks, the central bank might also sound a bit dovish and delay the balance sheet run-off to calm the markets. 

15:24, 24 Jan 2022



About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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