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Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

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  • Update - gold extending its rally to session highs as the US Dollar continues to slide following this comment from Powell. The Fed Chair also stuck to his transitory inflation script during the presser. Meanwhile, real yields just hit new all-time lows. $GLD $DXY $XAUUSD https://t.co/GEpIKpttUs
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  • Fed's Powell: - No sense of panic in regard to inflation - I do not believe wage increases are causing price inflation
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Forex Strategy: NZD/USD Bulls Struggling Ahead of Key 0.8600 Level

Forex Strategy: NZD/USD Bulls Struggling Ahead of Key 0.8600 Level

David de Ferranti, Currency Analyst

Talking Points

  • NZD/USD Technical Strategy: Sidelines Preferred
  • Doji signaled indecision near key 0.8700 handle
  • Test of 0.8600 mark prompts bulls to take a breather

The Kiwi bulls have returned following a brief retreat towards key support at the 0.8500 handle. However, we’re left to question how much steam the recovery has, given a bullish candlestick pattern did not precede the bounce. There is also notable selling pressure sitting around the psychologically-significant 0.8600 level, which may restrain further gains for NZD/USD.

NZD/USD: Bulls May Lose Steam Near 0.8600

Forex-Strategy-NZDUSD-Bulls-Struggling-Ahead-of-Key-0.8600-Level_body_Picture_2.png, Forex Strategy: NZD/USD Bulls Struggling Ahead of Key 0.8600 Level

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to examine intraday price action; the importance of the 0.8600/05 mark is further reinforced, given that it has acted to cap gains for the pair during Asian trading today. Yet a reversal pattern remains absent at this stage, which suggests the bears may remain in hiding for the time-being.

NZD/USD: Bears Await Reversal Pattern

Forex-Strategy-NZDUSD-Bulls-Struggling-Ahead-of-Key-0.8600-Level_body_Picture_1.png, Forex Strategy: NZD/USD Bulls Struggling Ahead of Key 0.8600 Level

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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