USD Slips on Mixed News + US and China Cold War?

In today’s live trading session, we discussed the cold war brewing between two superpowers and its potential effects on the Forex market. We then identified two setups for the major currency pairs. In particular, long setups for both NZDUSD and AUDUSD.

Tensions have been high between the US and China since the escalation of the trade war in 2019. Donald Trump has made matters worse as he blames China for the Covid-19 pandemic. In addition, the United States has taken sides with Hong Kong and its protestors against the Chinese government. Mike Pompeo has said that the US is ready to sever most or all of its political and economic relations with China if need be. Trading conditions were unbearable during the last trade war, one can only imagine how it will be this time around with an ongoing pandemic.

Early this morning, the US economy printed mixed fundamental news. For one, the US unemployment claims have once again exceeded the forecast. On the other hand, the core durable goods have surpassed the forecast. The majors have gained against the US Dollar this morning, with the Euro reaching new monthly highs. During our session, we have found entries to go long for NZDUSd and AUDUSD as they show the most upside potential.

It feels that as the weeks go by, the markets get slower and more indecisive. But we have adapted and found a way to make it work for us. We still have 36 hours left to trade with setups that are pending, lets see if we can squeeze a few last-minute pips from the market. With that being said, we hope you are all safe and well. As always, trade responsibly!