I’ve been bearish on the NZD for a few weeks now and as I mentioned yesterday it’s one of my favourite trades at the moment. The Kiwi has sold off all the way down from 75 cents and is now pushing below 0.7200.

The next key downside target for me is 0.7100. If we can spike into 0.7200 then I think we are setting up for a nice leg lower. I suspect we might get some USD strength which can potentially spark this trade even further.

There’s also a nice downtrend that I have my eye on which adds to the overhead resistance at 0.7200.