Kiwi breaking down as US economic data heats up
NZD/USD is breaking down, slicing through uptrend support on the daily chart as we head towards nonfarm payrolls. With momentum indicators providing bearish signals, selling rallies and breaks is preferred near-term.
If we see a push back towards the former uptrend today, consider selling with a tight stop above for protection against reversal. Potential downside targets include .6157, the 50DMA and .6109 where the price bounced strongly from on September 11.
While the payrolls report could generate any number of market reactions depending on the prevailing narrative, give the threat posed by an escalation in geopolitical tensions over the weekend, riskier currencies such as the Kiwi may struggle for meaningful upside in the current environment.
Good luck!
DS
If we see a push back towards the former uptrend today, consider selling with a tight stop above for protection against reversal. Potential downside targets include .6157, the 50DMA and .6109 where the price bounced strongly from on September 11.
While the payrolls report could generate any number of market reactions depending on the prevailing narrative, give the threat posed by an escalation in geopolitical tensions over the weekend, riskier currencies such as the Kiwi may struggle for meaningful upside in the current environment.
Good luck!
DS
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