New Zealand Dollar Interest Rate Outlook Weakens Further (Daily FX) and Euro / US Dollar Testing Key Support, Break Offers Sell Entry (Daily FX)

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City of Industry, CA --(www.USEquityNews.com)-- 01/12/2009 - Currencies industry alert provided by U.S. Equity News. The New Zealand dollar pushed higher against the greenback for the fifth consecutive week as oil prices crossed above $50 a barrel for the first time in nearly a month. The rise in crude drove the commodity-based currency to test 0.6000 during the week, but the sharp pullback in global commodity prices paired with the lack of momentum to close above the psychological resistance continues to favor a bearish forecast for the kiwi-dollar. New Zealand Dollar Interest Rate Outlook Weakens Further Fundamental Outlook For New Zealand Dollar: Bearish


- New Zealand Credit Card Spending Falls Further- Trade Deficit Unexpectedly Narrows as Import Demands Falter

The New Zealand dollar pushed higher against the greenback for the fifth consecutive week as oil prices crossed above $50 a barrel for the first time in nearly a month. [Read the full article]

Writing in our weekly technical outlook report, we noted that the Euro was likely to see near-term gains against the US Dollar to re-test support-turned-resistance at the bottom of the range from late December in the 1.3823-1.3910 area. Indeed, the pair saw near-term upside but ran out of stem on a test of 1.38 and dropped back to a key multiple support/resistance level above 1.34. A daily close below this level clears the way for a selling opportunity targeting 1.3075, the range top that contained the pair from 10/22/08 - 11/10/08. [Read the full article]

The British Pound has added 3.61% against the US Dollar to date this month, but technical positioning suggests the upswing may be running out of stem. GBPUSD traded up to resistance at a downward-sloping trend line connecting major swing highs since late October and put in a bearish Star candlestick, hinting at the possibility of a forming top. Near-term resistance is seen at 1.5096, the 23.6% Fibonacci retracement of the 10/20/08 - 12/31/08 decline. A daily close below this level conservatively targets 1.4650, the double bottom tested in mid-November and early December. A more ambitious target is 1.4350 at the most recent swing low. [Read the full article]

The US Dollar moved higher against the Euro and the British Pound while stock markets dropped in Asian trading, replaying the risk aversion dynamic that ruled the markets prior to mid-December. The economic calendar is virtually empty in European hours, with technical considerations likely to guide price action in the near term.Key Overnight Developments• US Dollar Rises as Stock Markets Fall, Signaling Possible Return of Risk Aversion• Euro, British Pound Extend Friday's Loses in Overnight TradingCritical LevelsThe Euro moved lower against the US Dollar to start the trading week, testing past the 1.34 level. [Read the full article]

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