On Monday, China’s ambassador to London accused foreign countries including the United States and Britain of interfering in Chinese internal affairs through their reactions to the violent clashes taking place in Hong Kong, Foreign direct investment (FDI) in China rose 6.6% from a year earlier to 752.41 billion yuan ($107.58 billion) in the first 10 months of the year, and Homebuilder confidence in the US slipped slightly in November. The economic calendar is going to continue to be light on Tuesday.
Today I’m looking at the NZD/USD pair which has just confirmed above the daily Ichimoku cloud, despite lack of real bullish momentum. The reason why this could eventually turn into a bigger movement is that the NZD/JPY pair has already confirmed above the daily cloud and in the process of reaching the resistance levels. The future cloud is bullish and I also spotted a reverse head and shoulder bullish reversal pattern the further strengthens this bullish signal. The next resistance levels are at 0.6494 and 0.6565. Of course, trading in the financial markets involves a risk of loss and you should only trade the money you can afford to lose.
In my book, Ichimoku Secrets, I explain how this could be an interesting buying opportunity provided you’re willing to take the risk. For more on Ichimoku strategy development, don’t forget to grab the PDF version of my book, Ichimoku Secrets.