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.
Recommended Content
Editors’ Picks
EUR/USD clings to marginal gains above 1.0750
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD edges higher toward 1.2600 on improving risk mood
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold climbs above $2,320 as US yields push lower
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.