Trading plan for December 28Yesterday’s news renewed concerns on the trade war between the US and China. Trump’s administration plans an executive order that would protect US companies from using products made by Chinese firms Huawei Technologies and ZTE
The economic calendar does not contain the significant data today that is why it is recommended to trade on the market sentiment.
Yesterday’s news renewed concerns on the trade war between the US and China. Trump’s administration plans an executive order that would protect US companies from using products made by Chinese firms Huawei Technologies and ZTE. That is why the uncertainties on reaching the trade deal between the countries increased the risk-off sentiment on the market. As a result, the Australian dollar fell yesterday. On the daily chart, we can see that the downtrend for the pair is still on and parabolic SAR confirms that. On H1, the pair has been making modest gains towards the resistance at 0.7061. If this level is broken, the next resistance is placed at 0.7076. If the risk-off sentiment increases, AUD/USD will fall towards the support at 0.7015. The next support is at 0.6971
Let’s look at how the New Zealand dollar has been trading against the USD. On the daily chart, yesterday’s news made the kiwi fall towards the 50-day MA. The indicators do not signal the reversal and the trend is bearish, according to Parabolic SAR. On the 1 hour chart, the pair has been trading sideways. If you scalp, you can use the rebounds from the borders of horizontal channel to open positions. If investors are more confident in the market’s conditions, the pair will rise towards the resistance at 0.6720. If this level is broken, the next resistance is placed at 0.6729. Otherwise, if bearish pressure increases, the pair will fall towards the support at 0.6693.