NZDUSD extends rally

The pair is testing key resistance at 0.694: Chart

New Zealand

The US Dollar was strongly bearish against all of its major pairs on Wednesday. On the US economic data front, the Mortgage Bankers Association's Mortgage Applications declined 0.3% for the week ending November 13th compared to -0.5% in the previous week. Finally, Housing Starts spiked to 1,530K on month in October (1,460K expected), from a revised 1,459K in September. 

On Thursday, Initial Jobless Claims for the week ending November 14th are expected to decline to 700K, from 709K in the week before. Continuing Claims for the week ending November 7th are expected to fall to 6,400K, from 6,786K in the prior week. The Leading Index for October is expected to rise 0.7% on month, in line with September. Finally, Existing Homes Sales for October are expected to slip to 6.46M on month, from 6.54M in September.                   

The Euro was also bearish against most of its major pairs with the exception of the USD. In Europe, the European Commission has posted final readings of October CPI at +0.2% on month, vs +0.1% in September. Also, the U.K. Office for National Statistics has reported October CPI at +0.7% (vs +0.5% on year expected) and PPI at +0.0%, vs +0.1% expected.

The Australian dollar was mixed against all of its major pairs. 

Looking at Wednesday's movers, the NZD/USD gained 44 pips and remains one of the best performing pairs over the last 5 days with a gain of 94 pips. The pair has gained more upside momentum after breaking above a diamond continuation pattern. Price action is testing key resistance at the 0.694 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.