NZD/USD traces out an outside day in a spot to watch for a US dollar reversal<p>This is an interesting chart today because NZD/USD has been a strong performer in the past month and highly correlated with stock markets. </p><p>Today it ran into the August high and reversed, putting an outside day on the chart.</p><p>It's a real gut-check moment in markets today. Either the Fed scenario of a soft landing and gradually-declining inflation pans out or we get a re-emergence of inflation or we get a hard landing. In the first scenario NZD/USD rises but in the other two it declines in a classic 'dollar smile' outlook.</p><p>For right now, I think you have to go with the chart and -- at the very least -- take a bit of risk off the table. The anti-USD trade has had a great run but the future is cloudy and year-end flows aren't going to clear the picture.</p>
This article was written by Adam Button at forexlive.com.
Source: NZD/USD traces out an outside day in a spot to watch for a US dollar reversal (https://forexlive.com/technical-analysis/nzdusd-traces-out-an-outside-day-in-a-spot-to-watch-for-a-us-dollar-reversal-20221205/https://forexlive.com/technical-analysis/nzdusd-traces-out-an-outside-day-in-a-spot-to-watch-for-a-us-dollar-reversal-20221205/)
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