I’m looking for selling opportunities on NZD/USD following dovish commentary from the RBNZ who signalled a pause in its recent rate hike cycle, despite raising its overnight cash rate by 25bps as expected, and said a high NZD is unsustainable and could have a big fall.
I’m looking to short this pair around the 0.8600 to 0.8620 area with a profit target of 0.8500 and a SL at 0.8680.
Overall Bias on this trade
This trade is a shorter term position based purely on sentiment. I remain bullish on NZD in the long term but feel that 0.88’ provide a solid cap for the price action for now.
Any negative data or comments from New Zealand will cause sell offs that we can take advantage of in the short term.
If the price falls down to 0.8500 – 0.8400 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 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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