I will place a stop loss just above R1 @ 0.9330. My target will 0.9000 where I will look to close out half the position and let the rest ride to break even.
The CFTC report released on Friday showed WTI5 net long positions increase from 9k to just under 70k contracts. The CAD/USD also looks as though it could retrace further in the near term.
It is a bank holiday in the states tomorrow so I would not expect to see this trade move much until Tuesday.
What could go wrong... Oil prices continue to take a hit and NZD has a good week of data including retail sales, PPI Input and GDT Price Index.
I will review the sentiment daily to see if anything changes.
Appreciate comments back.