By: Bastian Rubben
The investors pulled the US stock markets to a mixed territory on the background of less-than expected consumer confidence data, as today the investors will look forward to the Core Durable Goods Orders m/m data.
The fact that the stocks did not make another bullish day gave the USD opportunity to correct against the major currencies after few days of weakening. The American currency has been moving through a channel versus the NZD during the month, between 0.825 and the 200 SMA at 0.805. The pair NZD/USD has failed in breaking the resistance several times and yesterday it made a bearish candlestick close to the resistance, which means that there are better chances for the current pattern to remain and for the NZD to slide. Another element that supports this possibility is the fact that stochastic oscillator is getting close to the level of 80 that indicates for overbuying. Nevertheless, if the USD suddenly changes its trend versus the major currencies and starts losing its strength, the pair could break-through the resistance ad rise towards 0.84.
The NZD is weakening against the Euro as well, as the European currency is trying to consolidate above the resistance at 1.33 against the USD, on the way to 1.35. Therefore, the strengthening of the EUR along with the weakening of the NZD pushes up the pair EUR/NZD. The last two candlesticks indicate for a possible bullish reversal, after few days of declining during last week, and if the EUR successfully crosses above the tow-days high, the pair might rise upwards to 1.65.
