Not much details is given, but it looks like the North Korea leader Kim Jong Un wants to sign a peace treaty as well as establish diplomatic relations with the US.
Expectations for North Korea’s nuclear missile tests point to a stoppage or de-scaling to the very least. Investors seem to be unloading the US dollar as the seek for safe haven currencies is reduced.
NZD trades continue to remain in the spotlight for me as I scaled into two trades at the beginning of the market open.
NZDUSD took off on market open looking to make a new swing high. After seeing fast break above a 4-hour high, I decided to take a long entry just as the moving averages are converging indicating a potential longer term trend change. After a rough last week, I expect this pair to normalize and continue its rally. 0.7370~ is currently my profit target.
Similarly, NZDCAD has been experiencing a monster rally up to last week. After the downturn last week, I believe this is a fair entry point to ride a longer term rally.
One concern is the daily resistance level at the 0.9411~ mark. It was tested last week and held up successfully. Given that the selling pressure wasn’t as strong and very short lived, I expected this daily resistance to be broken fairly easily for the week ahead.