I’m still looking for selling opportunities on NZD/USD following a lack of newsflow over the weekend and dovish commentary from the RBNZ last week who signalled a pause in its recent rate hike cycle and said a high NZD is unsustainable and could have a big fall.
You can look to short this pair around the 0.8550 area with a profit target of 0.8500 and a SL at 0.8600.
Overall Bias on this trade
This trade is a shorter term position based purely on sentiment from last weeks dovish comments from the RBNZ. 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 selloffs that we can take advantage of in the short term.
If the price falls down to 0.8500 – 0.8400 I will be where I resume my buying of this particular pair, or if we get any further fundamental developments.
Until this current sentiment changes I expect this pair to keep grinding lower.
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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