Technical Outlook :Outlook in NZDUSD has turned neutral with risk to the downside , resistance comes at the 0.7938 levels , a failure to hold above the 0.7938 levels on a weekly closing basis could mean a return to the 0.7790/0.7659 levels where a cut will turn focus on the 0.7500 levels , further downside will aim the 0.7350 levels.
On the upside , resistance comes at the 0.7938 levels , breaking this level on a weekly closing basis will bring a recovery towards the 0.8033 levels before the next possible fall , however ; a clear break above the 0.8033 levels will have large bullish implication towards the 0.8422 levels.
In all , as long as resistance 0.7938/0.8033 holds on a weekly closing basis , outlook in NZDUSD remains on the downside towards the 0.7790/0.7659 levels where a cut will turn focus on the 0.7500 levels . a clear break above the 0.8033 levels will have large bullish implication towards the 0.8422 levels.
Support and resistance : 0.7350 , 0.7500 , 0.7659 , 0.7790 , 0.7938 , 0.8033 , 0.8242 , 0.8422
Key data/events which may influence NZDUSD next week :
Sunday Nov 16 2014
- New Zealand will release data on Retail Sales (Q.Q).
Tuesday Nov 18 2014
- US will release its data on PPI (m.m).
Wednesday Nov 19 2014
- US will release its data on Building Permits followed by FOMC Meeting Minutes.
Thursday Nov 20 2014
- US will release its data on CPI (m/m ) and Core CPI (m/m) followed by its weekly report on Initial Jobless Claims and Philadelphia Fed Manufacturing Index.
Events will be discussed during the week.
- A weekly closing above the the 0.8033 levels will bring strong bullish move towards the 0.8422 /0.8530 levels.
- A rejection from the 0.8033/0.7938 levels – reversal pattern on the daily time frame – is likely to bring fall resumption , a clear break below the 0.7790 will build strong pressure on the 0.7659 levels .
- Watch out for news near support and resistance levels.