The Kiwi Looks Like it Has More Downside Left In It
If you’ve been following the FX Leaders Team over the last few weeks, you'd know that we’ve been riding the commodity currencies pretty
If you’ve been following the FX Leaders Team over the last few weeks, you'd know that we’ve been riding the commodity currencies pretty hard. The AUD and NZD, in particular, have been absolutely tanking and I’m a happy man as it means that there have been some really great opportunities to trade with the trend.
At the moment the NZD/USD is a favourite as the downtrend has been strong. Even last week when the USD was weak, the NZD still managed to underperform and sell off.
To me, that means it is super weak.
Trade Idea
With that in mind, it’s good to look at what we have below as I want to find trades that have downside potential, without too much support to hold it up. That way we can find great risk/reward opportunities.
We have to go back to May 2016, to find when the NZD/USD last hit 0.6700. That to me is a good thing as I feel that will be our next downside target. If we can get a pullback to just below 0.6900, then I think that might be an excellent multi-day trading opportunity.
NZD/USD – 240 min Chart.
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