Key Highlights
- NZD/USD started a strong increase above 0.6750 and 0.6880.
- It might face a strong resistance near the 0.6980 and 0.7000 levels.
- Gold price is still struggling to clear the $1,900 resistance zone.
- The Euro Zone CPI declined 0.3% in Oct 2020 (YoY), similar to the market forecast.
NZD/USD Technical Analysis
In the past few weeks, there was a strong increase in the New Zealand Dollar above 0.6800 against the US Dollar. NZD/USD even broke the 0.6900 resistance level to move further into a positive zone.
Looking at the weekly chart, the pair settled nicely above the 0.6800 resistance, level, the 100-week simple moving average (red) and the 200-week simple moving average (green).
The pair is now approaching a couple of important hurdles near 0.6980 and 0.7000 (2019 swing zone and a major barrier). If there is a successful close above the 0.7000 barrier, the pair will set a new two-year high.
The next major resistance is near the 0.7050 level. It is close to the 1.236 Fib extension level of the key decline from the 0.6755 high (formed on 29th Dec, 2019) to 0.5468 swing low (formed on 15th March, 2020).
On the downside, there is a major bullish trend line forming with support near 0.6750 on the same chart. If there is a downside break below the trend line, the pair could revisit the 0.6500 support.
Looking at EUR/USD, the pair seems to be facing a strong resistance near the 1.1900 zone. Conversely, GBP/USD could continue to rise towards 1.3350 or 1.3400 in the coming days.
Upcoming Economic Releases
- US Initial Jobless Claims – Forecast 707K, versus 709K previous.
