NZD/USD Tests Major Floor as RBNZ Predicts Recession
The New Zealand dollar is facing a decline as the Reserve Bank of New Zealand (RBNZ) predicts an economic recession. The pair is currently attempting to stabilize above its January swing low of 0.6190. However, if the critical floor is breached, it could result in a more substantial correction toward the 0.6000 level. Bargain hunters have entered the demand zone due to the RSI’s oversold situation, while sellers have taken profits. The first hurdle for a rebound is at 0.6280, followed by a key resistance level of 0.6390, which needs to be surpassed to trigger a more extensive recovery.
XAU/USD Struggles for Bids as US Dollar Rallies: Precious Metal Continues to Grind Lower
The XAU/USD, or bullion, is slipping 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, leading to a struggle to find bids. Timid rebounds so far have met stiff selling pressure, leaving little room for the bulls to maneuver. The immediate resistance level is at 1845, but the bears are expected to sell into strength as sentiment remains skewed to the downside. This leaves the XAU/USD with limited upward potential.
If the bearish trend continues, a break below the support level of 1818 would send gold to the psychological level of 1800, which is in the consolidation zone from last December. Traders should keep a close eye on this level as it could provide a key indication of the future direction of XAU/USD. Overall, XAU/USD struggles for bids as the US dollar continues to rally and sentiment remains bearish in the short term.
US Oil Prices Decline as Global Rate Increases Weigh on Growth and Demand Prospects
Title: US Oil Prices Decline as Global Rate Increases Weigh on Growth and Demand Prospects
Meta Description: WTI crude prices continue to fall, facing resistance at 77.60 after a failed bounce from 75.50. With fresh resistance at 76.00 and a recent sell-off pushing below 75.00, the path of least resistance is downward. A potential bearish continuation looms if buying interest does not emerge at this month’s low of 72.30.
The US oil market is experiencing a decline in prices as ongoing global rate increases put pressure on growth and demand prospects. Despite a recent bounce from 75.50, WTI crude prices have been unable to clear the support-turned-resistance of 77.60. As a result, a drop below the original support level indicates that the path of least resistance is down.
Currently, the commodity faces a fresh resistance level at 76.00 after a new round of sell-off broke through 75.00. If any meaningful buying interest does not emerge, the market could be in for a bearish continuation in the medium term. Investors will be closely watching the next level at this month’s low of 72.30 for any signs of potential support.
Overall, WTI crude prices continue to be influenced by global economic factors, with downside pressure expected to persist in the short to medium term.
Read Bullish on the Buck: An Analysis of the US Dollar Index Outlook
