The NZD/USD Breaks the Trend: Is it a Buy?
The NZD/USD has been one of the strongest performers in recent times.
The NZD/USD has been one of the strongest performers in recent times. It has put together a nice looking uptrend that has been holding strong since mid-December.
On Monday, the USD finally managed to claw back some of the losses and that meant the uptrend finally broke away to the downside.
This all started last week when we saw a rather weak CPI figure out of New Zealand and that sent the Kiwi plummeting. Thanks to the USD this week, we have finally managed to find ourselves in a bit of a mini-downtrend.
Looking to Buy
I’m not going to turn bearish on the Kiwi just yet though. I would like to be buying as I think both the USD has more weakness left in it and the Kiwi, more upside.
The obvious level for me is 0.7300. That’s a good short-term level. Below that, I like 0.7273 as another good entry point. If we break that, it would mean we are pushing beneath the swing low and that might start to look a little more bearish.
Of course, the big week of US data will have a big say in how things go for all the majors so keep that in mind prior to entering any trades.
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