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US equity bulls look to strike

Article by ForexTime

The US economy has so far been slightly less upbeat as of late, as Trump fears split over into the market leading to a selloff in the equity markets and the US dollar. So far those fears have been driven back by the recent trade deals with Saudi Arabia around US infrastructure and the markets belief that Trump will do what’s in Americas interest. This positive has come on the back of one of the first real blips we have seen, with existing home sales m/m coming in at 5.6M (5.7M exp) which shows the market is still quite resilient to stagnation of certain areas.

The S&P 500 at present has pushed higher to resistance at 2406 and could be poised for even bigger moves in the event that the economy sees positive data, or further positive political signs. If there were any dips I would expect to see it shift towards 2379 and 2369 where the bulls could potentially reign in the bears as we’ve seen a lot of price action around this levels. Any higher than the current resistance level and I would expect that we could see 2450 on the cards, as the market tends to like psychological levels more than anything else.

The high flying New Zealand dollar has been one of the most active pairs in the currency markets over the last few days as the bulls look to conquer the bears. This has been brought on by markets betting heavily on a positive budget from the NZ government, with many analysts expecting to see strong fiscal stimulus which is well in line with debt targeting. When compared to Australia it’s easy to see the strength that the NZ government is in and with the possibility of tax breaks for the economy traders are looking to cash in from any short term positive the markets may experience.

The NZDUSD has so far climbed high but run of steam as it hit strong resistance at  0.7053, this level has been quite strong in recent months, and has been backed up the 100 day moving average which the NZDUSD tends to respect if both sides are being sheepish. While it has so far paused the trend is very much in favour of the bulls and a further run higher is more than possible. Expectations from the market coupled with today’s announcement leads many to believe it could rise even higher.

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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