NZDUSD Keeps on Giving Bearishness

If you have followed through our trades from the beginning of March, you would have seen that the NZD/USD is one of those instruments we have had a 100% win rate. The current issue now is that this instrument is not looking to back down on its bearishness. Following Tuesday’s remarks from the RBNZ highlighting significant slowing-down global risk as a major factor for local headwind risk, we see the apex bank of New Zealand as quite dovish. This puts significant downward pressure on the New Zealand Dollar (NZD) and amidst a strengthening USD, the NZD/USD should keep on giving bearishness…

Technically, price is bouncing off the resistance level of a downward channel – setting up for a possible wave lower. We can look to short this instrument on the back of this.

Fig 1: Hourly (H1) NZD/USD Chart

NZD/USD Sell @ current market (instant execution) Stop: 0.65320 Limit: 0.64580

Alternatively, the current environment of heightened geopolitical and trade risks have increased the likelihood of abrupt price reaction to substantial reports or even unsubstantiated rhetorics (rumours) – the dollar is in this line of fire and a weakening USD would most likely change the above outlook. So it is worthy of noting that you always use a stop-loss.

1 Comment to “NZDUSD Keeps on Giving Bearishness”

Leave a Reply

Cresta Help Chat
Send via WhatsApp