Hello my friends I know it’s the weekend and that last thing you want to think about is currencies, but here’s a trade idea to think about. We saw tons of volatility in the last few days with the over abundance of volatile fundamental events. All of the movement has put a few of the pairs into favorable entry levels, including NZD/USD.
This pair has been in a downtrend as market players lack confidence that there will not be any further rate hikes from the RBNZ in the near term. Also, commodity prices have taken a slide as demand has waned a bit from China and other large consumers of raw materials.
Technically, the pair has retraced to the 61.8% Fibonacci retracement line – usually an area of strong resistance and a high probability short setup. With stochastics still rising, I would like to jump in at a slightly better price and target the previous low.
Short half position NZD/USD at .7340, stop at .7380, pt at .7250
Short half position NZD/USD at .7360, sto at .7380, pt at .7300
Please remember to never risk more than 1% of you account on any trade, so adjust your position sizes accordingly!
Good luck my friends and have a great weekend!