I am considering a long position if the pair break 0.6850 on the daily close. I will then set a buy order for a retest of 0.6850. Target at closest level of resistance 0.7300. I am going to place a tight stop at 0.6750 and also set an alert for a daily close back below 0.6850. This will give me a 1:4.5 risk reward.
Fundamentally I think now that the rate hike is complete the US will not necessarily find enough supportive data for more than one rate hike in 2016 which will disappoint the theory of gradual increases over the next year which should really keep the dollar supported. If China steadily grows then there is no real reason for RBNZ to weaken their currency to make exports more appealing.
Fundamentally I think now that the rate hike is complete the US will not necessarily find enough supportive data for more than one rate hike in 2016 which will disappoint the theory of gradual increases over the next year which should really keep the dollar supported. If China steadily grows then there is no real reason for RBNZ to weaken their currency to make exports more appealing.
Order cancelled:
I will now look for buying opportunities around the rising trend line, likely to be around 0.6650 and this coming Friday with the NFP & Unemployment data.