The pick of the day is… Kiwi! Forex geek name for New Zealand Dollar. Remember the 3 black crows we identified on the daily dance floor last week? Well, this reversal candle pattern was strong enough to actually reverse the range trend and the pair bounced up at the support level, now approaching the hard-core resistance level at 0.84143. Will the pair continue to bounce up and down within this well-defined consolidation range? Should the pair confirm a break above the resistance level, that could open doors for more gains to the 0.85 area and above, so we shall wait and see.
Since Mr. New Zealand is dancing against Ms. USA on this dance floor, let’s throw in some insights about Ms. USA herself who is getting most of her dancing moves by Janet Yellen. Ms. Yellen spent six hours in front of the House Financial Services Committee, answering all manner of questions (ranging from the entirely pointless to the extremely relevant). Here are a few takeaways from her first testimony:
1- Tapering is still on
2- Despite the very disappointing employment releases in the past couple of months, Yellen isn’t worried about the latest NFP reports.
3- Global market volatility, namely falls in Chinese manufacturing, the devaluation of the Argentinean Peso and Turkey’s Lira falling massively were not issues born of the Fed’s yo-yo decision making on tapering last summer, and that it’s not a concern… for now.
4- Risk appetite might return.
Stay tuned for more updates and if you feel like you’re lost in translation with this report, come one over to InvestDiva.com and check out our straightforward and easy education program.