The next 24 hours will be critical for NZDUSD as the pair continues to carve out a rising wedge pattern ahead of key event risk for both currencies.
New Zealand will be the first to kick things off over the next few hours, first reporting their trade balance at 6:45pm EST followed by the business confidence report at 9pm EST.
The USD takes the reigns tomorrow with advance GDP at 8:30am EST followed by FOMC at 2pm EST. And if that weren’t enough to get the pair moving we have the RBNZ rate statement tomorrow at 5pm EST.
Needless to say the next 24 hours promises to be filled with more than just acronyms. So what does all of this mean for us technical traders?
For starters it means we need to apply an extra dose of patience. Regardless of the price action we get over the next 24 hours I have no intention of touching this pair until tomorrow’s close at the earliest.
This particular rising wedge is interesting in terms of its timing with upcoming events. A surprise from any one of the events I just mentioned could be the catalyst we need to see the market breakout.
Summary: A daily close above wedge resistance could trigger a move to the .7890 resistance level. Break that and we could see the pair reach .8034 in the coming weeks. Alternatively, a daily close below wedge support would have us looking for bearish price action on a retest of the level as new resistance. Key support comes in at .7444 and .7170.
