NZDUSD breaks away from a diamond pattern

The US Dollar was bullish against most of its major pairs on Wednesday with the exception of the NZD. On the US economic data front, the Mortgage Bankers Association's Mortgage Applications fell 0.5% for the week ending November 6th, compared to +3.8% in the week before. 

On Thursday, the Consumer Price Index for October is expected to rise 0.1% on month, compared to +0.2% in September. Initial Jobless Claims for the week ending November 7th are expected to fall to 734K, from 751K in the prior week. Continuing Claims for the week ending October 31st are anticipated to decline to 6,900K, from 7,285K a week earlier. Finally, the Monthly Budget Deficit for October is expected to increase to 275.0 billion dollars on month, from 124.6 billion dollars in September.        

The Euro was bearish against most of its major pairs with the exception of the GBP. In Europe, no major economic data was released. 

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

New Zealand

maintained its benchmark interest rate at 0.25% and delivered a fresh round of monetary stimulus. The RBNZ projected a more bullish view regarding the country's economic recovery. Sub-zero rates are no longer a large fear which helped bid up the NZD/USD in Wednesday's trading. On a technical perspective, the pair broke above a diamond continuation pattern; a new uptrend is in play. As long as 0.6675 can hold as support, look towards a test of 0.7065 resistance and the uptrend to continue. 

Market chart of NZD to USD breaking away and showing a diamond pattern. Published in November 2020 by FOREX.com

Source: GAIN Capital, TradingView
Related tags: Forex Forex NZD USD

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