Asian markets were hit by profit-taking as traders brace for top-tier releases coming up this week.
With no major reports scheduled in the next couple of hours, I’m looking at NZD/USD’s charts for trade opportunities.
Before we check out the setup, you might want to read the top headlines during today’s Asian session trading:
Fresh Market Headlines & Economic Data:
- Mnuchin, Pelosi talk virus relief as deadline looms
- GOP rolls out $1 trillion stimulus to start talks with Democrats
- Google employees can now work from home until July 2021
- ANZ: Australia’s consumer confidence dropped 1.7 points this week
- New Zealand suspends Hong Kong extradition treaty
- Australian employment suffers setback from second virus wave
- Gold hits record, gets more precious as dollar loses value
Upcoming Potential Catalysts on the Economic Calendar:
- Spain’s unemployment rate at 7:00 am GMT
- U.K.’s CBI realized sales at 10:00 am GMT
What to Watch: NZD/USD
NZD/USD fell by as much as 50 pips earlier today as a lack of fresh catalysts inspired risk-takers to take some profits off before this week’s closely watched economic reports.
Of course, it also didn’t help high-yielding currencies that the safe-haven gold made new highs and attracted momentum traders.
With no major data on the docket, I’m thinking risk sentiment will also influence today’s London session trends.I’m looking at NZD/USD, which is hanging out at a mid-channel support that’s also near the 100 SMA on the 1-hour time frame.
Its current level is a good place to buy since NZD/USD has already used up its average daily volatility and risk-takers could eventually go back to extending the pair’s uptrend.
If the profit-taking vibe extends all the way to the U.S. session, however, then NZD/USD could extend its pullback to the 200 SMA closer to the ascending channel support.