Tit-for-tat trade spats starting to take its toll…Continued
The big focus in today’s Asian session remained the recent trade war rhetoric and actions between Trump and China.
After China announced that they would retaliate against the US tariffs, pres Trump responded by saying the US would impose a 10% tariff on another $200bl Chinese goods if China will continue with their retaliation.
The school ground quarrel between the two biggest economies in the world has made markets very nervous.
As a result, risk assets has really taken a beating, to the benefit of the JPY and CHF.
Furthermore, NZD remains on the back foot after yesterday’s NZIER consensus report stated that growth is likely to come in softer for NZ than previously expected.
Our pair selection for today:
Given the NZD weakness and JPY strength, we have chosen the NZDJPY as one of the pairs we will be watching closely today to look for trading opportunities.
NZDJPY – H4
NZDJPY – M30
We hope that there were some of you that were able to take advantage of this move. We are short on the pair from 76.800, which was the first resistance area we highlighted yesterday.
As stated above, the biggest reason why we would like to pair the NZD versus the JPY is the current risk tone in the market and the NZIER report.
For those who are not in the move already, we have selected the 76.000 level as a possible retracement move for a re-entry.
We believe the bulk of today’s trading will be risk based, so watch out for any new developments with regards to trade wars as that will have a massive impact on this pair and trade idea.
Also, technically the pair is close to very important support levels on the daily and weekly charts, so keep that in mind if you are planning to hold the trade.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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