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On May 4th, German Chancellor Merz stated on May 3rd that the recent US decision to reduce its troop presence in Germany was "unrelated" to his criticisms of the war with Iran. Speaking on German television channel ARD, Merz said he was not surprised by the US governments decision to reduce troop levels, adding, "What weve heard these past few days isnt all new. The situation may have indeed escalated somewhat, but this is not a new development." Merz stated that he would not abandon cooperation with US President Trump, saying, "For us, the United States remains the most important partner in NATO." He emphasized that the USs nuclear sharing arrangements have not been reduced in any way, and there are no restrictions on the US commitment to providing nuclear deterrence to the NATO region. Merz also stated that the Tomahawk cruise missiles promised by the US in 2024 will not be deployed in Germany for the time being, because "the Americans dont even have enough for themselves right now."According to the Financial Times, several banks, including JPMorgan Chase and Morgan Stanley, are looking to shift risk to avoid being “overwhelmed” by data center debt.On May 4th, an Al Jazeera reporter pointed out that regardless of what is currently being discussed at the negotiating table, Iranians and Americans are speaking two different languages. What we are seeing may simply be negotiations to maintain dialogue, but this does not guarantee that unexpected events will not occur, triggering a new round of intense conflict. He believes that the differences between the two sides are difficult to bridge. When the US sets "surrender" as its bottom line, while Iran rejects any proposals that approach this situation, he sees no substance in the negotiations. However, the current situation presents a two-way pressure scenario: the US is pressuring the Iranian economy, while Iran is pressuring the global economy. It remains to be seen who will back down first. The risk now is that this situation, perceived as pressure from both sides, could escalate into a stalemate. In this scenario, war would once again loom, especially if Israel were to intervene to break the deadlock.According to Israeli media outlet Ynet, Israel is preparing for an escalation of the situation and has expressed skepticism about the US strategy of containing Iran.On May 4th, local time, Ukrainian President Volodymyr Zelenskyy held separate meetings with the Prime Ministers of Norway, Finland, the United Kingdom, and the Czech Republic in Yerevan, the capital of Armenia, on May 3rd. During his meeting with British Prime Minister Keir Starmer, Zelenskyy stated that Ukraine is willing to launch the next round of trilateral negotiations, with achieving a just and dignified peace being its core demand. Zelenskyy and Starmer also discussed support for Ukraines energy sector. Zelenskyy briefed Starmer on the situation on the front lines and the Russian attacks on Ukraine, emphasizing the need for a unified European air defense system.

NZD/USD Price Analysis: Struggles to sustain the recovery from the 0.6370 support converging

Daniel Rogers

Dec 13, 2022 15:03

 NZD:USD.png

 

NZD/USD is trading near 0.6390 in the early hours of Tuesday as Kiwi pair traders look for additional signs to prolong the current rebound from the significant support convergence. In doing so, the statement demonstrates the market's caution ahead of the United States' November inflation data, namely the Consumer Price Index (CPI) (CPI).

 

Although NZD/USD reversed a three-day gain the day before, bears were unable to breach the 50-bar Simple Moving Average (SMA) and a one-week-old ascending support line near 0.6370.

 

However, the pair's comeback conflicts with the negative MACD signals to challenge NZD/USD buyers. The downward-sloping resistance line from 5 December, which was approaching 0.6420 at press time, might also threaten the rising momentum of the New Zealand dollar pair.

 

If the NZD/USD maintains firmer than 0.6420, it is probable that the monthly high around 0.6475-80 will be retested.

 

In contrast, a decisive violation of the 0.6370 support confluence might fast send the price to the previous weekly low near the round number 0.6300.

 

However, at 0.6290 and 0.6280, the 100-day simple moving average (SMA) and 61.8% Fibonacci retracement level of the NZD/USD pair's gain from November 28 to December 1 could pose a challenge to bearish.