EURNZD and NZDUSD continued consolidation

EURUSD chart analysis

Looking at the EURUSD on the daily time frame, we see that the pair encountered an obstacle to the 20 day moving average. To continue up, we need a break above to continue until the next 50-day moving average in the 1.19000 zones. We are still in declining consolidation after falling below the 200-day moving average in early July. Looking at Fibonacci support, we still have a 38.2% level at 1.16950. A drop below would open the next support to 1.16000. For the bullish trend, we need a positive consolidation on the bottom line of support, and if EURUSD succeeds, we can expect to climb to 23.6% Fibonacci level at 1.19500.

NZDUSD chart analysis

Looking at the NZDUSD on the daily time frame, we see that the NZDUSD is still in a growing consolidation, with current support for the 20-day and 50-day moving averages. The pair is still struggling with support at 0.70000. On Wednesday, we will receive a report from the Reserve Bank of New Zealand on possible changes in the interest rate. The forecast is that RBNZ will raise the interest rate from 0.25% to 0.50%. This may help the NZD to continue further in the bullish trend. Our first signal is a 200 day moving average at 50.0% Fibonacci average at 0.71000. Our main goal then is the upper resistance line at 61.8% Fibonacci level at 0.71500.

Market overview

The service sector in New Zealand continued to expand in July, albeit at a slightly slower pace, BusinessNZ said on Monday, with a service performance index of 57.9.
This is less than the downward revised 58.4 in June (originally 58.6), although it remains well above the rise or slip line of 50 that separates expansion from contraction.
Individually, sales (63.6), employment (55.2), new orders (63.2), and inventories (52.0) all increased, while deliveries to suppliers (47.6) were declining.
“Combined with last week’s PMI employment record of 58.3, all of this sets K3 as another strong quarter of employment growth, and the country’s unemployment rate continues to decline. This is good news if you’re looking for a job, not so much if you’re trying to find staff, “said BNG senior economist Doug Steel.
Manufacturing activity in New York recorded significantly slower growth in August, according to a report released by the New York Federal Reserve Bank on Monday.
The New York Fed said its general terms and conditions index fell to 18.3 in August from 43.0 in July. Although the positive reading still indicates growth, economists expected the index to show a much more modest decline to 30.0.
Looking ahead, the New York Fed said that companies are still optimistic that conditions will improve in the next six months, with the expected significant increase in employment and prices.
Growth in industrial production and retail sales in China slowed in July, indicating a slowdown in economic recovery amid new COVID-19 outbreaks and supply chain disruptions.
Industrial production increase slowed to 6.4 percent in July from 8.3 percent a month ago, data from the National Bureau of Statistics revealed on Monday. Production was expected to rise 7.8 percent.
Retail sales grew more slowly than 8.5 percent year-on-year, after increasing 12.1 percent in June. This is weaker than the economists’ forecast of 11.5 percent.
From January to July, investments in fixed assets increased by 10.3 percent compared to the same period last year. Economists expected annual growth of 11.3 percent, after rising 12.6 percent from January to June.