NZDUSD profit target reached again, prepare to buyBuy above 0.7176. Stop loss at 0.7137. Take profit at 0.7240.
Reason for the trading strategy (technically):
Price has dropped nicely and is reaching our profit target perfectly. We prepare to turn bullish above 0.7176 support (Fibonacci retracement, horizontal overlap support) for a push up to 0.7240 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (21,5,3) is seeing strong support at the 10% level where we expect a bounce in price from.
Reason for the trading strategy (fundamentally):
The main news event today is the U.S. Durable Goods Orders. Durable goods are typically sensitive to economic changes. When consumers become sceptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The headline figure is expressed as a percentage change from previous months. A decrease in this value would mean a weaker USD. Forecasts for this month is expecting a significant rise from last month which means a stronger USD. This goes against our bullish NZDUSD view, hence, it is important to exercise caution on this trade.
