I’m looking for selling opportunities on NZD/USD after a disappointing milk powder auction yesterday which caused the pair to fall overnight, alongside worse than expected NZ CPI (1.6% vs. Exp 1.8%) ahead of next week’s RBNZ rate decision.
I’m looking to short this pair around the 0.8700 to 0.8720 area with a profit target of 0.8650 to 0.8630 and a SL at 0.8780.
Overall Bias on this trade
This trade is a short term position based purely on sentiment. I remain bullish on NZD in the long term but feel that 0.88’s may provide a solid cap for the price action for now.
Because of the fact that it is currently very close to these recent highs I am confident that a sell off will occur in the event of any negative data or comments from New Zealand, that we can take advantage of in the short term.
If the price falls down to 0.8600 – 0.8500 this will be where I resume my buying of this particular pair, or if we get any further fundamental developments.
Until this current sentiment changes at around the entry price levels I will be looking to take a small day trade and ride this short term sentiment down.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
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