Looking For NZD Weakness vs. USD Technically and Fundamentally
Updated
New Zealand has a new Prime Minister, Jacinda Ardern, whose Labour party is expected to bring about continued uncertainty for the New Zealand dollar. And we all know how much the market hates uncertainty.
There's an interest rate decision due soon from the Reserve Bank of New Zealand (RBNZ), but there are no expectations of any moves - that's expected in Q4 2018.
Although there may be some talk from the RBNZ regarding policy outlook, it's unlikely that anything major will happen in the near-term, which may offer a chance to sell the NZ$$ against the USD - which is expected to see the Federal Reserve hike rates one more time this year (This year has gone by so quickly, I almost can't believe it).
Technically, we've seen the NZD fall quite a lot already, but it has found some support at the 2017 lows. The price seems to be capped by the possible resistance zone, and by the moving average as well.
I am trading this with a sell limit to trigger if the price falls below 0.6870. Target is in the vicinity of the May 2016 low to offer roughly a 2:1 reward / risk ratio.
There's an interest rate decision due soon from the Reserve Bank of New Zealand (RBNZ), but there are no expectations of any moves - that's expected in Q4 2018.
Although there may be some talk from the RBNZ regarding policy outlook, it's unlikely that anything major will happen in the near-term, which may offer a chance to sell the NZ$$ against the USD - which is expected to see the Federal Reserve hike rates one more time this year (This year has gone by so quickly, I almost can't believe it).
Technically, we've seen the NZD fall quite a lot already, but it has found some support at the 2017 lows. The price seems to be capped by the possible resistance zone, and by the moving average as well.
I am trading this with a sell limit to trigger if the price falls below 0.6870. Target is in the vicinity of the May 2016 low to offer roughly a 2:1 reward / risk ratio.
Trade closed manually
Looks like the price went the other way; however, I was protected by a well placed limit order instead of just opening a position and hoping for the best. Maybe things will reverse and the price will collapse tomorrow, but at this point I need look at everything again.
Sell limit deleted without being triggered.
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