Trade Recommendations for current Session
Today I’m looking for continued selling opportunities on NZD/USD, this is following the New Zealand Prime Minister now joining the central bank in aggressively talking down the currency.
I would be looking to get into this position around current levels or you could wait for a little rally back up to around 0.7800 and ride the trend down, with a stop loss around 0.78500 and a profit target anywhere in the low 0.77’s around the 0.77150 area.
The situation has changed slightly since I last advised this trade on the 25/9/2014 with it now being confirmed that the RBNZ have intervened and sold off the NZD en masse,essentially giving the NZD no clear indication as to when it might stop being sold off.
Overall Bias on this trade
TheNZD has taken another plummet against the USD and is now trading at levels not witnessed since early 2013 as the Prime Minister reiterates what the RBNZ have been saying. Data is now confirmed to show that the RBNZ intervened in August and issued the biggest currency sale since mid 2007.
The New Zealand Prime Minister has released commentary stating that the Goldilocks level (the price level they see as optimum) is 0.6500 this is around 1000 pips so we can expect to see some further losses on the currency over the rest of the week given that the RBNZ has stated that further intervention is feasible.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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