New Zealand dollar
has been a front runner of US dollar
selling rush started by weak NFP. We like selling dollar and have been positioned like that. But today even though we prefer long NZD/USD
, for medium term, we are looking for tactical short term trade selling NZD/USD
on spikes towards 0.7025 / 0.7050. Reason for this trade is that today is RBNZ rate announcement day and those who have been long would like to reduce the risk as well as those who are staunch believer of lower NZD would like to sell against this resistance. It provides very low risk high reward set up and we can't miss it.