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7 Oct 2013
NZD/USD back on the downside in what may be a technically-driven sell-off
FXstreet.com (Barcelona) - The NZD/USD traded all over the place last week – more so on an intraday basis multiple days. The technical crowd says it all appears to be part of a larger downside correction.
NZD/USD traders to focus on DC and data this week – along with technicals
NZD/USD traders will obviously have to keep one eye on Washington for breaking news on the budget / debt ceiling / Obamacare battle. However, technical forces (see below) and economic data points will also play a role in determining the short-term direction for the cross:
• Monday –US Consumer Credit
• Tuesday – New Zealand Electronic Card Retail Sales; US Trade Balance; US Fed Head speeches
• Wednesday – New Zealand Business PMI; US mortgage applications; US 10-Year Note auction; US FOMC meeting minutes;
• Thursday – US import/export prices; US weekly jobless claims; multiple Fed Head speeches; US 30-Year Bond auction;
• Friday – US monthly jobs report; US PPI; US retail sales; US University of Michigan Consumer Sentiment; US Business Inventories
Technical outlook for NZD/USD
Technicians say NZD/USD may be in the “c” wave of an “abc” downside correction. They note that if that is the case that the downside target will be 0.8126 – but Wednesday’s low of 0.8192 will have to be broken on the way down. Resistance comes in at Friday’s peak at 0.8349.
NZD/USD traders to focus on DC and data this week – along with technicals
NZD/USD traders will obviously have to keep one eye on Washington for breaking news on the budget / debt ceiling / Obamacare battle. However, technical forces (see below) and economic data points will also play a role in determining the short-term direction for the cross:
• Monday –US Consumer Credit
• Tuesday – New Zealand Electronic Card Retail Sales; US Trade Balance; US Fed Head speeches
• Wednesday – New Zealand Business PMI; US mortgage applications; US 10-Year Note auction; US FOMC meeting minutes;
• Thursday – US import/export prices; US weekly jobless claims; multiple Fed Head speeches; US 30-Year Bond auction;
• Friday – US monthly jobs report; US PPI; US retail sales; US University of Michigan Consumer Sentiment; US Business Inventories
Technical outlook for NZD/USD
Technicians say NZD/USD may be in the “c” wave of an “abc” downside correction. They note that if that is the case that the downside target will be 0.8126 – but Wednesday’s low of 0.8192 will have to be broken on the way down. Resistance comes in at Friday’s peak at 0.8349.