Welcome to another live trading session. In today’s trading session, we went over the current status of our NZDCAD. USDCAD and EURUSD trades. We then spent some time to analyze the US Dollar Index (DXY) and NZDUSD.
In yesterday’s session, we discussed our bearish bias for NZDCAD and USDCAD. We reached this conclusion using fundamental and technical analysis. We knew from price action that both pairs were headed lower as they had breached their monthly support zones. We then had better than expected CPi data for the Canadian Dollar this morning. This led to both pairs falling.
Since the end of 2019, we have been consistently bearish on EURUSD. The Euro is in a tough spot economically as quantitative easing has yet to provide any real growth to their struggling German and French markets. Once you factor in Brexit and the strong US Dollar, it is easy to see why the Euro has been selling-off as of late. We are currently on our way to take profit 1, and we have a long term target of 1.05350 in mind.
The last bit of the session was focused on the US Dollar Index (DXY) and NZDUSD. The US Dollar Index is set to reach the psychological level of 100 in the coming days. We can expect most of the majors to slip against the US Dollar during this time. As the New Zealand Dollar continues to weaken due to Coronavirus, NZDUSD will continue to fall. We are currently eyeing an entry into this trade once the current 4hr candle closes bearish. We are in some great setups. At this point all that is required is patience. As always, be safe and trade responsibly!
Check Out Yesterday’s Blog Post: February 19th, 2020