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NZD/USD Capped by Downward Pressure

If you have been following us on our trade setups, you would understand that we are a strong believer of “if it continues to give, we would continue to take” – this is exactly the case of the NZD/USD. These currency pair have literally been capped by significant downward pressure in recent months. In short currently, the NZD is the worst performing amongst the G10 currencies. Amidst a current risk-off market, the NZD/JPY and NZD/USD are quite palatable to short. Nevertheless, from a technical vantage point, the latter serves better.

Technically, there is a near-term support area in the hourly (H1) NZD/USD chart that we need to pay attention to as we look to short. In this light, we would look to set a sell order to accommodate this support zone.

Fig 1: Hourly (H1) NZD/USD Chart

 

 

NZD/USD

Sell order @ 0.65678

Stop: 0.66034

Limit: 0.65259

 

Alternatively, we are in a very fragile market where ‘tweets’ can literally change the directional outlook of an asset, hence we advise that traders always use a stop loss.

 

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