Trade Recommendations for current Session
Today I’m looking for selling opportunities on NZD/USD, this is following negative rhetoric coming from the RBNZ who stated that the current price of the NZD is unsustainable and when dealing with a situation they view as unsustainable, intervention becomes feasible.
I would only be looking to get into this position short term as I see can’t seethe NZD continuing to fall over the coming weeks and do expect a price correction moving forward; however as a day trade you could look to take a NZDUSD position at around 0.8000 with a stop loss around 0.8050 and a profit target in the 0.7900 area.
Overall Bias on this trade
The RBNZ have stated that they see the current price action is unjustified and unsustainable this has seen NZDUSD trade below 0.8000, the main point that caused the market react was the RBNZ emphasising that what they perceive as unsustainability is the key driving point to make them potentially consider intervening.
The market has taken this as a indication to migrate away from the currency and I would expect to see that migration continue throughout today’s session, looking ahead however I would conclude that the NZD is now being slightly oversold and would expect a correction. However for today’s session I can’t see the potential for any shift in the upside and would therefore advise to just ride the trend 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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