FPG NZDUSD Market Report December 23, 2024

The NZD/USD currency pair, observed on the H1 timeframe, continues to exhibit a sideways movement within a defined channel, constrained by a price range between 0.56689 and 0.56073. This range-bound behavior follows a notable decline in price recorded on December 18th, reflecting a period of consolidation after the sharp downward movement.

Employing an alternative approach to technical analysis, specifically utilizing Fibonacci retracement levels, it becomes evident that the current price is approaching the critical 61.8% Fibonacci level. This development suggests a marginally bullish sentiment in market dynamics, indicating the possibility of an upward attempt to retest the 100% Fibonacci level positioned near 0.56689 in the near term.

Further analysis of market volatility, as assessed through the Bollinger Bands indicator, reveals a slight narrowing of the bands, implying reduced price fluctuations. This contraction often correlates with a potential decline in trading activity within this currency pair, necessitating close observation of forthcoming market movements.

Market Observation & Strategy Advice:

1.Price Consolidation: The NZD/USD pair remains range-bound within the 0.56689–0.56073 channel, indicating a period of consolidation after the significant price drop on December 18th.

2.Volatility: Bollinger Bands are narrowing, reflecting reduced volatility and hinting at lower trading activity in the immediate term.

3.Range Trading: Consider range-trading strategies by capitalizing on support near 0.56073 and resistance at 0.56689, as the price continues to consolidate.

4.Price Action: Monitor price action around the 61.8% Fibonacci level for confirmation of bullish intent before entering long positions.

5.Risk Management Advice: Adjust stop-loss levels cautiously, as reduced volatility may result in narrower price swings.

Market Performance (Forex):

Pair Last % Change

EUR/USD 1.0434 +0.05%

GBP/USD 1.2572 +0.02%

JPY/USD 0.0064 -0.02%

Todays Key Economic Calendar:

UK: GDP Growth Rate QoQ and YoY

CA: GDP MoM

US: Chicago Fed National Activity Index

US: CB Consumer Confidence

Risk Disclaimer This report is for informational purposes only and does not constitute financial advice. Investments involve risks, and past performance does not guarantee future results. Consult your financial advisor for personalized investment strategies.