Looking for a NZDUSD breakout
Gary Christie November 5, 2020 4:46 AM
Resumption in the prior uptrend is possible: Chart
The US Dollar was bearish against most of its major pairs on Wednesday with the exception of the GBP. On the US economic data front, the Mortgage Bankers Association's Mortgage Applications rose 3.8% for the week ending October 30th, compared to +1.7% in the previous week. Automatic Data Processing's Employment Change showed that 365K jobs were added on month in October (643K expected), compared to a revised 753K jobs added in September. Finally, the Trade Deficit shrank to 63.9 billion dollars on month in September (as expected), from a revised 67.0 billion dollars in August.
On Thursday, Initial Jobless Claims for the week ending October 31st are expected to decline to 735K, from 751K in the week before. Continuing Claims for the week ending October 24th are expected to fall to 7,200K, from 7,756K in the prior week. Finally, the Federal Open Market Committee (FOMC) is expected to keep the Federal Funds Target Rate between 0.00% and 0.25%.
The Euro was mixed against all of its major pairs. In Europe, Research firm Markit published final readings of October Services PMI better than expected for the Eurozone at 46.9 (46.2 expected), Germany at 49.5 (48.9 expected), and France 46.5 (as expected) but below expectorations for the U.K. at 51.4 (52.3 expected).
The Australian dollar was bullish against all of its major pairs.
It has been a quiet day on the FOREX front after a volatile evening session as Americans voted for the next President of the United States. One major pair on our radar is the NZD/USD which is up 35 pips. A diamond continuation pattern is in-play. The preference is for a break to the upside which would signal a continuation of the uptrend that started back in March at the pandemic lows. Price action has started to break above the diamond pattern. A break above 0.6795 resistance would be the signal bulls are waiting for. 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
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.