NZDUSD: BEARISH

Current Level: 0.6485

Target: 0.6200

Preference: BREAK

How We See it Playing Out

The NZDUSD looked set to break lower at the end of last week but that move was delayed by a few days after Monday’s announcement by the FED that they would begin buying corporate bonds and rolling out more stimulus put an underlying bid tone on the equity markets.

But the positive move on the equity indices, up 0.62% on the day, was pretty crap for such measures. So once the initial euphoria subsides I think we’ll see yesterday’s moves corrected and then when it breaks down through 0.6400 it should accelerate to the downside.

The Break trade is the logical strategy. That’s because when it breaks back down all upward momentum will be out of the market and there won’t be anything holding the pair up. If it continues to rally then we’ve lost nothing. So it either works or we don’t get set.

Momentum will come during the North American session so keep a close eye on the equity markets for direction. We need US equities to go down to get this trade-in play!

NZDUSD Hourly Chart

RESULT 

Brad Gilbert

CEO & Founder of Traders4Traders – Brad has been trading for 28 years and was a former Chief FX Trader for Citibank. Brad trades all markets and all timezones.

Trades: EUR, GBP, AUD, NZD, CAD, JPY, CHF, DOW, SP500, OIL, GOLD

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