NZDUSD pending breakout
Gary Christie October 12, 2020 4:31 PM
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
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