Good morning Forex Kings,
Equities had a huge rally over night as another + $1 trillion USD stimulus package was proposed. House Speaker Nancy Pelosi told the Democrats she wants direct payments to individuals, extended unemployment insurance and more recourses for food stamps.
Additionally, there is some signs of a slow down in the number or corona-virus cases in the US (however the death toll now tops 10,000). In the UK the number of deaths slowed for a second day, however the GBP is being weighed down as Boris Johnson is admitted to intensive care as his health deteriorates due to the virus.
The AUD and NZD rallied throughout yesterdays session, this could be a similar theme this week is equities continue higher.
The safe haven USD could devalue if the corona-virus fears continue to fade over the coming days.
News coming from the RBNZ yesterday suggested they are not willing to introduce negative interest rates. This has downplayed the rumours of further rate cuts in the future. This is also why we witnessed a stronger NZD and AUD throughout yesterdays session.
NZDUSD – 4 Hour Charts
We are looking at a double trade on this set up incase of a small pull back before the next leg higher.
Trade setup 1: BUY (market order) current price 0.5935, stop loss set at 0.5835 and take profit set ant 0.6060
Stop loss: 100 PIPS
Take Profit: 125 PIPS
Trade setup 2: BUY LIMIT – entry price 0.5890, stop loss 0.5835 and take profit 0.6060.
Stop loss: 55 PIPS
Take Profit: 170 PIPS
We may extend the take profit to 0.6160