There’s Not Much Resistance in the Kiwi
Rowan Crosby • 1 min read
The commodity currencies have been really strong in the last few sessions, which goes hand in hand with a bit of a jump in commodity prices. That’s probably not a shock.
The USD/CAD was a big mover yesterday and broke out from its trading range that had been holding up for a few months.
Similarly, the Kiwi has done a bit of an about-face. We have been selling the NZD/USD all the way down and it’s really been a profitable trade for us.
For whatever reason, the newfound rally has been holding up and we keep on moving higher.
I really like a long position in the Kiwi for the main reason that we have a nice risk-reward. Sure the trend now looks like it is to the upside. However, let’s look at overhead resistance.
As you can see the next major upside target appears to be at 0.7150 while the risk looks like it is at 0.7050. To me, that’s a nice risk/reward at current levels.
It’s so good that in fact we also have an open buy signal out on the Kiwi.