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Currencies

NZD/USD

• NZD/USD is under pressure, with a sixth straight daily loss looming.
• No respite for the NZD/USD following the fall below 0.6700 • The collapse below 0.6700 last week was a key factor in driving the recent drops in the NZD/USD, but the stronger dollar and more hawkish Fed undoubtedly amplified that mood.
• As a result, the pair is currently on the cusp of a seven-day losing streak, down another 0.4 percent today.
• From a technical standpoint, there is very little chance of a push towards 0.6500 in the near future. And there might be where sellers are aiming before we see a respite in the bearish trend.
• The chart above just serves to underline that the dollar is in a favourable technical position across the board.

British Pound

High inflation is a great problem. And if it does not get under control soon, it will influence the pound even worse.

The British pound may continue to fall: various basic and technical variables support this prospect. The US Fed’s aggressive strategy and the predicted expansion of the dollar will cause the pound to fall quicker than it is presently.

Accelerating inflation and rising interest rates in the United Kingdom will only add to the burden. The situation may improve if all coronavirus limitations were lifted in the United Kingdom. However, based on how the situation around the Omicron strain is unfolding throughout the world, it would be premature to rest just yet.

GBP/USD technical analysis

The technical outlook of the British currency is likewise bleak. The GBP/USD currency pair is breaching the 1.3705 barrier level. The current price pattern on W1 resembles a bearish 5-0 pattern. A bounce off the top border of such a pattern, in most situations, signals the start of a drop with the objective of falling below the local low. As a result, GBP/USD prices may decrease to 1.3005 in the near future. In this case, 1.3405-1.3305 is a solid support level. These are critical levels, and a confident breakout will pave the way for a powerful falling momentum.

Cryptocurrency

Bitcoin attempted to climb on Thursday morning but began to fall along with US market indexes during the American session. Despite opening higher, the US stock market plummeted following Thursday’s trade results. The high-tech Nasdaq experienced the most significant losses.

Investors continue to flee US markets as the US Federal Reserve’s monetary policy is projected to tighten. Following its meeting the day before, the central bank announced that it will begin raising interest rates in March, thereby ending the whole stimulus programme at the start of the month. The Fed’s balance sheet will be reduced in the future, according to the regulator.

In such cases, investors will continue to cut their positions in risky assets, and cryptocurrency may be the first to suffer.

Meanwhile, bitcoin is attempting to maintain a price over $35,000, taking advantage of a respite in the slide of the stock markets. However, if the stock market continues to tumble, the crypto market will follow suit.

The Securities and Exchange Commission (SEC) of the United States has denied Fidelity’s application to operate a bitcoin ETF. Due to strong volatility in the stock market, Fidelity advised investors that bitcoin was in a “liquidity storm.”