Last week ended off with a concern for the economic slowdown in the U.S. as retail sales figure, a gauge for inflation and interest rate, disappointed with a -0.1%.
I don’t do this often especially as this deals with equities, but this is a good indication of a global economic slowdown.
CNNMoney reports Walmart will close 269 stores affecting 16,000 workers. With its low cost model taking the advantage of economies of scale, it still decided to close stores. This is a good indication of slumping sales further supported by the poor retail sales figure.
As a technical trader, this provides some very nice entry opportunities as we want to enter with the trend, but not at a low. The Friday sales figure caused a selloff across U.S. Dollar pairs giving you an opportunity of getting in at a relatively favourable price.
Although this pair has been ranging since December of last year, we are beginning to see it reverse from a supply zone. This provides another selling opportunity off a relative high. This is also in the direction for the overall trend if we were to look at the longer time frame.
As a scalper, I have been constantly entering short positions into this trade. The monthly time frame shows the support level broken and now turned to a resistance zone. Expecting this zone to hold, price could potentially fall to 0.85~ level giving even more room to short.
The NZDUSD pair is also another pair that experienced a bullish rally upon the disappointing retail sales figure. In following with the long term trend, this is also another favourable trade to go short on.
Since I scalp, I make multiple entries off these zones that I follow. You may also notice that I have added more moving average figures. In my previous analysis, I used the moving average figures primarily for dynamic support and resistance purposes. However, the recent trends from the strong U.S. Dollar allowed for using multiple moving averages to spot new trends.
I am currently monitoring the USDJPY pair. Although I have made a few scalps, I am not posting a chart as of yet until I determine a stronger trend direction.