Good afternoon Forex Kings,
Some nice moves in our favour today on the JPY and USD pairs. With the markets at these key levels I feel it is crucial to get another position set up ready to take advantage of a stronger USD this week.
The NZDUSD from a technical perspective looks very attractive.
Currency markets appear to be turning risk off as the JPY and USD are currently strengthening.
North Korea has cut off communications with the South, following the distribution of anti-regime leaflets coming from activists in the South. The deterioration in relations is pushing the yen higher.
US and China tensions remain on the back burner, but President Donald Trump’s intention to sign the Uyghur human rights bill is adding to tensions. The Uyghurs are a Muslim minority in the Western Chinese province of Xinjiang.
Beijing warned its citizens against visiting Australia due to a “significant increase in racist attacks” against Asians. This may also weigh down the NZD.
NZDUSD – Daily Time Frame
Negative trend line resistance at 0.6600.
NZDUSD – 4 Hour Charts
Trend line breakout to the downside has now taken place after being rejected from 0.6580.
Trade Setup: SELL NZDUSD, Market Execution (current price 0.6525), stop loss 0.6585 and take profit 0.6355
Stop loss: 60 pips
Take profit: 170 pips