NZD/USD Daily Signals – August 28, 2017

Dollar Looks Bearish

What’s in the News?

On Friday, the economists resolved the fate of the global economy at a mountain lodge as President Donald Trump’s name was rarely disclosed as the top central bankers.

Without even citing the man in the White House, the presentations from Fed Chair, Janet Yellen, The European Central Bank President Mario Draghi and a host of researches was constituted to a broad denial among the ideas that carried the President to office. His presence emerged large during this Federal Reserve symposium.

The day when the President’s call for financial deregulation and ‘America First’ economic nationalism was the same day when Yellen countered the president by reminding of the deep financial crisis and how it wrecked the economy. She also argued how China and Mexico are less to be blamed for job losses.

Yellen is still expecting for a reappointment by Trump to a new term. Considering the wealth of economic data to be released, seasonal light volume is expected to head towards a volatile week. The data includes the Kansas City Federal Reserve’s central-banker conference in Jackson Hole, Wyo.

During the panel, Trump’s approach was more sceptic, even when the economists and Central bankers agreed how hard it would be for the workers. According to the economists, the “policy should be aimed at improving job skills, local capital investment and safety net programs for displaced workers, the sort of micro-level efforts that can be hard to organise and finance and take time to show results.”

What do the Charts Say?

Intraday bias in NZD/USD trading above 0.7205 level gets a good support base that reinforces the expectations of changing towards the bullish bias in the upcoming period. The pair’s way is open to head towards the recently recorded top at 0.7277 level. On the near term basis,the pair remains bullish for the moment with pair is  trading on rebound after testing barriers. This makes the trading settle now at the support area that appears in the chart. Some consolidations would be seen with bullish momentum. A further rise is expected from current levels with pair trading on rebound found at latest trend line support and with the oscillator above 50.0 levels. We can see the pair showing signs of medium term bullish movement to upward bias and retest the 50EMA. The first break of the MA should have the pair retest the all important 100SMA before making any further move and should signal clear direction.

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