NZDUSD diamond formation breakout
Gary Christie October 27, 2020 7:44 PM
A possible resumption in the prior uptrend in play: Chart
The US Dollar was bearish against all of its major pairs on Tuesday. On the US economic data front, Durable Goods Orders jumped 1.9% on month in the September preliminary reading (+0.5% expected), compared to a revised +0.4% in the August final reading. Finally, the Conference Board's Consumer Confidence Index unexpectedly declined to 100.9 on month in October (102.0 expected), from a revised 101.3 in September.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 23rd is expected. Finally, Wholesale Inventories for the September preliminary reading is expected to rise 0.4% on month, in line with the August final reading.
The Euro was bearish against all of its major pairs. In Europe, the European Central Bank has reported September M3 money supply at +10.4% (vs +9.6% on year expected). In France, September PPI was released at +0.2% on month, vs +0.1% in August.
The Australian dollar was bearish against most of its major pairs with the exception of the CHF, EUR and USD.
The NZD/USD was one of today's largest movers among the majors with a gain of $35 pips. Looking at a daily chart of the NZD/USD, price action appears to breaking above a diamond continuation pattern. The preference is for A continuation of the uptrend that started back in March at the pandemic lows. A break above 0.6795 resistance would be a strong bullish signal. However, a break below 0.6485 support would be a bearish signal with a decline to the next major support level likely at 0.638.
Source: GAIN Capital, TradingView
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.