The Forex majors have spent much of the day awaiting the FOMC meeting minutes for more insight on the Dollar’s trajectory. Meanwhile, shorts for NZDUSD are starting to play out as price revisits support at 0.69200.
Today’s FOMC conference had some positives and some negatives. For one, Powell believes the US economy is on the right path towards its goal of near-zero interest rates. However, the economy still isn’t there yet. There is still work to be done as the nation battles a new threat in the Delta variant of Covid-19.
Last week, price action traders entered short for NZDUSD. After spending a few days in drawdown, the price has once again come back near the entry price. The four-hour time frame shows that price was able to make a new lower high this week, which should subsequently be followed by a new lower low.
The US Dollar Index (DXY) reacted in a bearish fashion to today’s FOMC presser as the price begins its descent to 92.000. Many majors are up against the Dollar to end off the New York session. It’ll be interesting to see if this bias holds for the remainder of the week.
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