Source: PaxForex Premium Analytics Portal, Technical Insight
Reuters released Fed Chairman Powell's response to Senator Rick Scott, who expressed concern about rising inflation and the Fed's buying program:
- Too low inflation hurts both households and companies;
- We don't plan to allow inflation to go substantially above 2% or inflation above that level for an extended time;
- Inflation will rise slightly higher this year, reflecting in part temporary factors amid an economic recovery;
- We don't expect inflation to rise too much, but we do have the tools to deal with 1970s-style inflation;
- The pace of Fed bond purchases is not related to deficits;
- Growth in the U.S. economy appears to be accelerating;
- Unemployment rates are not fully in the labor market, which has not yet returned to pre-pandemic levels;
- Rising COVID-19 incidence is worrisome; Vaccination allows hope for a return to normalcy this year.
NZD/USD, 30 min
Pivot: 0.7176
Analysis:
Provided that the currency pair is traded above 0.7148, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 0.7176
- Take Profit 1: 0.7211
- Take Profit 2: 0.7229
Alternative scenario:
In case of breakdown of the level 0.7148, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 0.7148
- Take Profit 1: 0.7118
- Take Profit 2: 0.7100
Comment:
RSI shows the possibility of an uptrend during the day.
Key levels:
| Resistance | Support |
| 0.7247 | 0.7148 |
| 0.7229 | 0.7118 |
| 0.7211 | 0.7100 |
NZD/USD, D1
Pivot: 0.7209
Analysis:
While the price is above 0.7022, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 0.7209
- Take Profit 1: 0.7477
- Take Profit 2: 0.7600
Alternative scenario:
In case of breakdown of the level 0.7022, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 0.7022
- Take Profit 1: 0.6816
- Take Profit 2: 0.6693
Comment:
RSI shows an uptrend in the medium term.
Key levels:
| Resistance | Support |
| 0.7724 | 0.7022 |
| 0.7600 | 0.6816 |
| 0.7477 | 0.6693 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD – buy above 1.2010 with 1.2045 and 1.2065 targets as Take Profit. Alternative scenario - if the level 1.2010 is broken-down, sell with the TP 1.1995 and 1.1980.
GBP/USD - long positions above 1.3825 with 1.3915 and 1.3945 targets as Take Profit. Alternative scenario - if the level of 1.3825 is broken-down, sell with the targets 1.3800 and 1.3775 as Take Profit.
AUD/USD – buy above 0.7695 with 0.7760 and 0.7785 as Take Profit targets. Alternative scenario - if the level of 0.7695 is broken-down, you should consider selling with the targets 0.7680 and 0.7660 as Take Profit.
