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This pair is trending lower and looks prime for another pullback to its falling trend line.

Will resistance hold?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Chinese trade surplus widened from $66.8B to $84.5B vs. $64B forecast

Chinese exports slowed from 28.1% to 27.1% in October

Chinese imports accelerated from 17.6% to 20.6% in October

BOJ expecting rebound in first half of next year but wary of supply chain risks and offshore recession

BOJ plans to maintain easy policy to improve output gap and household spending

Japanese leading indicators dip from 101.3% to 99.7% in Oct

ECB Chief Economist Lane: Current period of inflation unusual and transitory

Swiss jobless rate down from 2.8% to 2.7% as expected

Upcoming Potential Catalysts on the Economic Calendar:

FOMC member Clarida’s speech at 2:00 pm GMT
Fed head Powell’s speech at 3:30 pm GMT
BOE Governor Bailey’s speech at 5:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: NZD/USD

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

We’ve got a handful of FOMC members giving speeches later today, so I’m looking forward to some dollar volatility yo!

This might be enough to take NZD/USD in for a larger correction on its downtrend, possibly leading to a test of the falling trend line and 61.8% Fib.

Will sellers defend the ceiling?

Technical indicators seem to suggest so, as the 100 SMA is below the 200 SMA to hint that resistance levels are more likely to hold than to break.

At the same time, Stochastic is already reflecting overbought conditions and is heading lower to signal that sellers are taking over.

If any of the Fibs are able to keep gains in check, NZD/USD could resume the slide to the swing low at .7075 or lower.

Note that the pair gapped down over the weekend to suggest that Kiwi bears are eager to jump back in. Also, dollar bulls might be keen on pricing in expectations ahead of the U.S. CPI release later in the week.