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The NZD/USD has been a great trade for our followers in recent weeks. The sharp fall all the way down has given us a number of short opportunities. Then this week we saw a bit of base taking shape. However, things are starting to turn once again.

It looks like the retrace was really just a pause and an opportunity to take on yet another short position. Given the downside momentum, I am expecting us to take out both the lows and 0.6800 very soon.

Below that we have even more potential for some downside, with 0.6700 being the next swing low. I think that represents an excellent risk/reward. I would be looking at selling either a break of the lows that holds or a pullback around 0.6850.

 

NZD/USD – 240 min Chart.