NZDUSD diamond formation breakout

A possible resumption in the prior uptrend in play: Chart

Uptrend 2

The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, Durable Goods Orders jumped 1.9% on month in the September preliminary reading (+0.5% expected), compared to a revised +0.4% in the August final reading. Finally, the Conference Board's Consumer Confidence Index unexpectedly declined to 100.9 on month in October (102.0 expected), from a revised 101.3 in September.

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 23rd is expected. Finally, Wholesale Inventories for the September preliminary reading is expected to rise 0.4% on month, in line with the August final reading.       

The Euro was bearish against all of its major pairs. In Europe, the European Central Bank has reported September M3 money supply at +10.4% (vs +9.6% on year expected). In France, September PPI was released at +0.2% on month, vs +0.1% in August.

The Australian dollar was bearish against most of its major pairs with the exception of the CHF, EUR and USD. 


The NZD/USD was one of today's largest movers among the majors with a gain of $35 pips. Looking at a daily chart of the NZD/USD, price action appears to breaking above a diamond continuation pattern. The preference is for A continuation of the uptrend that started back in March at the pandemic lows. A break above 0.6795 resistance would be a strong bullish signal. However, a break below 0.6485 support would be a bearish signal with a decline to the next major support level likely at 0.638. 



Source: GAIN Capital, TradingView

Happy Trading.

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.