With U.S. markets closed on a vacation at this time, I’m considering New Zealand’s quarterly PPI may be the only real mover of NZD/USD.

Try this development setup I’m taking a look at.

Earlier than transferring on, ICYMI, I’ve listed the potential financial catalysts that it’s worthwhile to be careful for this week. Test them out earlier than you place your first trades at this time!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Information:

U.Ok. home costs keep flat in February vs. earlier 0.9% uptick – Rightmove

Crude oil turns increased once more on Chinese language demand forecasts and manufacturing limits

PBOC stored prime mortgage charges unchanged as anticipated

North Korea reportedly fires one other ballistic missile

U.S. and Canadian markets closed for the vacation

Eurozone shopper confidence index at 3:00pm GMT
New Zealand quarterly PPI enter and output at 9:45 pm GMT
Australia’s flash manufacturing and providers PMIs at 10:00 pm GMT
RBA financial coverage assembly minutes at 12:30 am GMT (Feb. 21)

Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

What to Watch: NZD/USD

NZD/USD 1-hour Foreign exchange Chart by TradingView

This week is off to a quiet begin, as U.S. banks are closed for the Presidents’ Day vacation.

Nonetheless, we would get some volatility on NZD/USD since New Zealand is scheduled to print its quarterly PPI report.

Quantity crunchers are betting on a slowdown in value pressures, with the PPI enter determine slated to dip from 0.8% to 0.5% and PPI output determine more likely to fall from 1.6% to 0.4%.

In that case, Kiwi merchants would possibly pare RBNZ fee hike bets now that inflation is stored in test. In distinction, Fed tightening hopes stay robust, following the upside surprises in U.S. information over the previous couple of weeks.

I’m seeing a descending development line connecting the most recent highs on NZD/USD, and it appears like this resistance zone is up for an additional take a look at quickly.

This occurs to coincide with the 50% Fibonacci retracement degree, which is only a few pips above the .6250 minor psychological resistance.

A better correction may attain the 61.8% Fib that strains up with the 100 SMA dynamic resistance, which is under the 200 SMA to replicate bearish momentum.

As well as, Stochastic is heading south to sign that sellers have the higher hand and would possibly take NZD/USD again all the way down to the swing low near the .6200 mark once more.

Simply maintain your eyes peeled for both an upside PPI shock or a robust pickup in risk-taking that may spur a reversal from the selloff!