The Kiwi Has Broken The Brakes
In May the Kiwi has made an impressive reversal, which seems to be continuing this month. The main reason for this is USD weakness, but we can´t rule out the positive market sentiment for commodity currencies as another reason.
Yesterday, the Aussie made more gains, while the CAD and NZD were treading water. This caused me to think that perhaps this run to the upside was over.
Well, it is not. Today, NZD/USD was the best performer amongst major forex pairs, while the other two Com Dolls are lagging.
NZD/USD was feeling dizzy yesterday, but today it´s feeling confident again
So, the commodity currencies are still on the attack with the Kiwi leading the way. Therefore, we are not shorting this forex pair anytime soon. At least not until we reach a certain moving average on the weekly forex chart, but that´s another story, which we will cover in the coming sessions.
Until then, we will try to find some good buying spots during dips. The closest areas to buy are around the 20SMA on the hourly chart and 50 SMA.
By the way, we just closed our buy forex signal in EUR/USD at 1.1270, since this level kept scaring the buyers away today. We reversed that trade and have now a short position in this pair. Let´s hope we see a decent pullback soon.
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