Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for September was reported at -NZ$1,017M monthly and at NZ$1,710M 12-month year-to-date. Forex traders can compare this to the New Zealand Trade Balance for August, reported at -NZ$282M monthly and NZ$1,420M 12-month year-to-date. Exports for September were reported at NZ$4.01B and Imports at NZ$5.02B. Forex traders can compare this to Exports for August, reported at NZ$4.41B, and to Imports, reported at NZ$4.69B.
US Preliminary Durable Goods Orders for September are predicted to increase by 0.5% monthly, and Durables Excluding Transportation are predicted to increase by 0.4% monthly. Forex traders can compare this to US Durable Goods Orders for August, which increased by 0.5% monthly, and to Durables Excluding Transportation, which increased by 0.6% monthly. The US S&P/Case-Shiller Composite 20 for August is predicted to increase by 0.50% monthly and by 4.20% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for July, which increased by 0.50% monthly and by 3.90% annualized. US Consumer Confidence for October is predicted at 102.0. Forex traders can compare this to US Consumer Confidence for September, reported at 101.8.
The forecast for the NZD/USD remains bullish after this currency pair moved out of its Ichimoku Kinko Hyo Cloud. Short-term volatility may increase with the Kijun-sen descending, the Tenkan-sen trending sideways, and the CCI in extreme overbought territory. The medium-term outlook carries a bullish bias, with the US election expected to add uncertainty over the next few trading sessions. Economic data out of the US is anticipated to confirm a slowdown. Will bulls get the fundamental support to push 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 0.6650 to 0.6710 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6685
- Take Profit Zone: 0.6765 – 0.6800
- Stop Loss Level: 0.6635
Should price action for the NZD/USD breakdown below 0.6650 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6635
- Take Profit Zone: 0.6570 – 0.6590
- Stop Loss Level: 0.6650
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