All eyes on G10 currencies – NZDUSD is leading
Updated
Trade set up
Tactically buyers of NZDUSD can position to enter a buy trade either after a closing break of resistance 0.6883 (16 November high), or after a retracement and retest of the top of the bullish flag pattern around 0.6790. A break out of the flag pattern has given us the confidence to trade this from the long side. We are targeting 0.7100 in weeks, increasing confidence here should price break the 16 November high
Why we like it
Jerome Powell hit the market with comments sending the US Dollar lower, although we didn’t actually see the comments as that dovish. We've seen a bearish outside day reversal candle in the US Dollar Index, and we want to see a break of the rising channel in the USD Index on the weekly before we firmly believe in continued USD weakness.
Reduced expectations of the future Fed rate hikes in 2019 have manifested into NZD and EM strength and the market is gunning for a pause in the Feds hiking cycle. This should limit the downside in NZDUSD, although let’s see how this weekends G20 meeting plays into this.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and
regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority
(FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Tactically buyers of NZDUSD can position to enter a buy trade either after a closing break of resistance 0.6883 (16 November high), or after a retracement and retest of the top of the bullish flag pattern around 0.6790. A break out of the flag pattern has given us the confidence to trade this from the long side. We are targeting 0.7100 in weeks, increasing confidence here should price break the 16 November high
Why we like it
Jerome Powell hit the market with comments sending the US Dollar lower, although we didn’t actually see the comments as that dovish. We've seen a bearish outside day reversal candle in the US Dollar Index, and we want to see a break of the rising channel in the USD Index on the weekly before we firmly believe in continued USD weakness.
Reduced expectations of the future Fed rate hikes in 2019 have manifested into NZD and EM strength and the market is gunning for a pause in the Feds hiking cycle. This should limit the downside in NZDUSD, although let’s see how this weekends G20 meeting plays into this.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and
regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority
(FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Trade active
Price broke through resistance on Monday's open and smart traders would wait for a retracement towards 0.6875 level which is the previous resistance, now becoming support. From this level, we are looking to initiate the trade with a stop loss below 0.6725Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority
(FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Trade closed: stop reached
This trade was closed as per the trade set up
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