Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand ANZ Business Confidence for July was reported at -29.8. Forex traders can compare this to the New Zealand ANZ Business Confidence for June, reported at -34.4. The Chinese PPI for June decreased by 3.0% annualized, and the Chinese CPI increased by 2.5% annualized. Economists predicted a decrease of 3.2% and an increase of 2.5%. Forex traders can compare this to the Chinese PPI for May, which decreased by 3.7% annualized and to the Chinese CPI, which increased by 2.4% annualized.
US Initial Jobless Claims for the week of July 4th are predicted at 1,375K, and US Continuing Claims for the week of June 27th are predicted at 18,950K. Forex traders can compare this to US Initial Jobless Claims for the week of June 27th, reported at 1,427K, and to US Continuing Claims for the week of June 20th, reported at 19,290K. US Wholesale Inventories for May are predicted to decrease by 1.2% monthly, and Wholesale Trade Sales are predicted to decrease by 4.0% monthly. Forex traders can compare this to US Wholesale Inventories for April, which increased by 0.3% monthly, and to US Wholesale Trade Sales, which decreased by 16.9% monthly.
The NZD/USD forecast remains bullish with the US battling the Covid-19 crisis with limited success. New daily infections surpassed 60,000, and some estimates conclude a rise to above 100,000 is possible. The younger generation is blamed for the rise, as they ignore social distancing and gather without face coverings. The Tenkan-sen and Kijun-sen support more upside, while the Ichimoku Kinko Hyo Cloud is sloping higher. Will today’s US data allow bulls to advance price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/USD remain inside the or breakout above the 0.6530 to 0.6630 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6580
- Take Profit Zone: 0.6710 – 0.6755
- Stop Loss Level: 0.6485
Should price action for the NZD/USD breakdown below 0.6530 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6485
- Take Profit Zone: 0.6290 – 0.6380
- Stop Loss Level: 0.6530
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