Source: PaxForex Premium Analytics Portal, Fundamental Insight

The New Zealand Trade Balance for August was reported at -NZ$353M monthly and at NZ$1,340M 12-month year-to-date. Forex traders can compare this to the New Zealand Trade Balance for July, reported at NZ$447M monthly and at NZ$50M 12-month year-to-date. Exports for August were reported at NZ$4.41B and Imports at NZ$4.76B. Forex traders can compare this to Exports for July, reported at NZ$5.04B, and to Imports, reported at NZ$4.59B.

US Initial Jobless Claims for the week of September 19th are predicted at 840K, and US Continuing Claims for the week of September 12th are predicted at 12,300K. Forex traders can compare this to US Initial Jobless Claims for the week of September 12th, which were reported at 860K, and to US Continuing Claims for the week of September 5th, which were reported at 12,628K. US New Home Sales for August are predicted to decrease by -0.9% monthly to 895K new homes. Forex traders can compare this to US New Home Sales for July, which increase by 13.9% monthly to 901K new homes.

The forecast for the NZD/USD is slowly turning a bullish corner after reaching a strong horizontal support area just below its Ichimoku Kinko Hyo Cloud. The Kijun-sen flatlined, and selling pressure is weakening. Today’s initial jobless claims out of the US may deliver a third weekly disappointment, prompting traders to realize floating trading profits from the US Dollar rally over the past two weeks. Will bulls receive the fundamental spark to reverse some of the losses in this currency pair? 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 0.6500 to 0.6550 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.6525
• Take Profit Zone: 0.6645 – 0.6670
• Stop Loss Level: 0.6465

Should price action for the NZD/USD breakdown below 0.6500 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.6465
• Take Profit Zone: 0.6290 – 0.6380
• Stop Loss Level: 0.6500

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