NZDUSD continues to show bullish momentum

The uptrend prevails, if resistance at 0.695 can be broken next week.

Charts (6)

The US Dollar was mixed against all of its major pairs on Friday. 

On Monday, Markit's US Manufacturing Purchasing Managers' Index for the November preliminary reading is expected to slip to 53.0 on month, from 53.4 in the October final reading.

The Euro was bearish against all of its major pairs. In Europe, the European Commission has released November Consumer Confidence Index at -17.6 (-18.0 expected). Separately, the U.K. Office for National Statistics has reported October retail sales at +1.2% (vs -0.3% on month expected), the November Gfk Consumer Confidence was reported at -33, vs -34 expected and the October Public Sector Net Borrowing was released at 22.3 billion pounds deficit, 31.5 billion pounds expected. Also, in Germany, October PPI was released at +0.1%, vs +0.4% the previous month.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD.


Regarding the week's U.S. economic data front:

Initial Jobless Claims unexpectedly rose to 742K for the week ending November 14th (700K expected), from a revised 711K in the week before. Continuing Claims fell to 6,372K for the week ending November 7th (6,400K expected), from a revised 6,801K in the prior week. 

The Leading Index rose 0.7% on month in October (as expected), in line with September. 

Existing Homes Sales jumped to 6.85M on month in October (6.47M expected), from a revised 6.57M in September, a level last reached in 2006. The Mortgage Bankers Association's Mortgage Applications declined 0.3% for the week ending November 13th compared to -0.5% in the previous week. Housing Starts spiked to 1,530K on month in October (1,460K expected), from a revised 1,459K in September. 

Retail Sales Advance rose 0.3% on month in October (+0.5% expected), compared to a revised +1.6% in September. 

Industrial Production increased 1.1% on month in October (+1.0% expected), compared to a revised -0.4% in September. 

Empire Manufacturing unexpectedly dropped to 6.3 on month in November (13.5 expected), from 10.5 in October.


One of the week's largest gainers was the NZD/USD which climbed 1.41% or 93 pips.

The Kiwi has shown continued upside momentum after breaking above a diamond continuation pattern. Price action is testing key resistance at the 0.695 level from back in March of 2019. As long as 0.6675 can hold as support and the pair can close above 0.694, look towards a continuation towards 0.7065 resistance and the uptrend to continue. 



Source: GAIN Capital, TradingView

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.