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Trade Idea: NZD/USD- Sell (Stop Limit) at 1.7410\40; Target: 1.7100\30; Stop: 1.7480\1.7520.
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I remain bearish on NZD/USD.
The consequences of the devastating
earthquake are still felt in New Zealand. A rate cut to accommodate to
the economic weakness will likely drive prices even lower.
The
NZD/USD has formed a hammer at the 0.7350 level, a key support level
for the last several months. Because of this, it looks decidedly
bullish for the short-term. It appears that support will end up
holding, and as such – we could see more consolidation between this
level and 0.7800.
Any break above Thursday’s high. 0.7377 is a buy
signal towards as highs at 0.78, and any break below its low at 0.7320
is a sell signal that could lead up down to 0.70 or lower. This pair is
at one of those places you like to take longer-term trades since it is
such an important area.[dailymarkets] |
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