By: Bastian Rubben
Wall Street closed the second day of the trading week in the green zone, as the ISM manufacturing data encouraged the investors. On the beginning of the day it looked like the indices were about to continue the negative momentum from Monday but strong data lifted the markets. However, weak finish by the technology sector pull the markets lower and NASDAQ looks more bearish now, mainly because the weakness of Apple these days.
It seems that the USD's investors are looking for significant development in the stock markets and the economy in order to choose direction, and therefore we do not see the American currency moves in significant way. This gives some of the currencies the opportunity to rise against the USD, but other, such as the NZD, are still having difficulties to get stronger. The pair NZD/USD has been moving in a triangle and it looks like the meeting point between the buyers and the sellers is getting close. Two weeks ago, the NZD crossed above the upper hedge and made the investors believe that it was about to start a strengthening session but eventually it fell down to the triangle's boundaries and made a false-break. This kind of false break might occur once again, but the technical trader should not try to predict the direction of the break-up or a break-down and has to get prepared to both scenarios. In case of a break-down, the NZD will meet the support of the 200 SMA around 0.8050, whereas a break-up might lift the pair to the next resistance at 0.83.
