NZDUSD pending breakout
Gary Christie October 13, 2020 7:31 AM
A consolidation remains in place, but for how much longer?
The US Dollar was mixed against all of its major pairs on a relatively quiet Monday in forex. On the US economic data front, no major economic data was released as the U.S. observed Columbus Day and Canada observed Thanksgiving.
On Tuesday, the National Federation of Independent Business's Small Business Optimism Index for September is expected to increase to 101.0 on month, from 100.2 in August. The Consumer Price Index for September is expected to rise 0.2% on month, compared to +0.4% in August. Finally, the Monthly Budget Deficit is expected to contract to 124.0 billion dollars on month, from 200.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the NZD and AUD. In Europe, Germany September Wholesale Prices were released at +0.0%, vs -0.4% on month in August.
The Australian dollar was bearish against all of its major pairs.
Looking at the NZDUSD chart, the pair is stuck in a consolidation between 0.6485 support and 0.9795 resistance. A break in any direction outside of its current range may prevent an interesting trading opportunity. The preference is for a break to the upside above 0.6795 for a continuation of the bullish trend channel. A break of 0.6485 support could put pressure on the pair down towards 0.6185.
Source: GAIN Capital, TradingView
From time to time, StoneX Financial 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.