The US reports the Durable Goods ordered in the next hour. It is expected to be higher by 0.5% against the previous release. As suggested yesterday, the USD is becoming firmer and despite losses in the beginning, some correction is expected. Today’s healthcare plan voting takes place and as you might be aware, President Trump didn’t get enough votes to pass the bill causing the delay on Thursday afternoon. It’s imperative for him to win his first legislative battle and set pace for the next economic agendas of tax reforms and border adjustments. Equities should be buoyed incase this bill passes through and that translates to a buoyant USD. There is a likelihood that OPEC meeting over the weekend will result to more extension of production cuts. Despite their efforts, Oil breached the $50 per barrel level and traded lower.
Technically, the NZD is weak and trending lower. There is a clear sell signal printed by the stochastics in the daily chart and the same has been replicated in the 30 min chart. The daily resistance trend line in the daily chart is significant and as observed, there is obvious weakness at this level. Placing a Fibonacci tool between last month’s highs and this month’s low shows that price is reversing at the 61.8 Level. I will look to sell the Kiwi today in small lots with full entry on Monday.
Trading will pan out as follows:
Stop Loss: 0.7040
Take Profit: 0.6950
Have a good trading day.