NZDUSD tests major floor
The New Zealand dollar softens as the RBNZ continues to expect the country to slip into a recession. The pair is looking to stabilise above the January swing low of 0.6190. A drop below this critical floor would open the door to a deeper correction towards 0.6000. The RSI’s oversold situation has attracted bargain hunters in the demand zone while sellers took some chips off the table. 0.6280 is the first hurdle to go before a rebound could kick off. Then 0.6390 is a key resistance to clear to trigger a broader recovery.
XAUUSD struggles for bids
Bullion slips as the US dollar rallies after relatively hawkish FOMC minutes. The precious metal continues to grind lower due to bearish inertia in the short-term. Timid rebounds so far have met stiff selling pressure. 1845 is the immediate resistance and the bears are expected to sell into strength as sentiment remains skewed to the downside. This leaves little room for the bulls to manoeuvre. A break below 1818 would send gold to the psychological level of 1800 in the consolidation zone from last December.
USOIL grinds lower
WTI crude falls as ongoing global rate increases weigh on growth and demand prospects. The latest bounce from 75.50 has failed to clear the support-turned-resistance of 77.60, and a drop below its origin means that the path of least resistance is down. 76.00 is a fresh resistance after a new round of sell-off broke through 75.00. This month’s low of 72.30 is the next level to see if any meaningful buying interest would emerge. Failing that, the commodity could be in for a bearish continuation in the medium-term.
