NZD/USD - Evaporating Yield Advantage, Part II - 12/22/2016
Yesterday we talked about how AUD/USD is going to suffer from rising US dollar and also mentioned the reason for AUD/USD to remain pressured. ( Please check the link ) Similar argument can be made for NZD/USD too. Many hated the rise from 0.6500 to 0.7500 and tried to short it in vain. To stick with the short US dollar stance, we were long NZD/USD too ( which you can check out from previous trade idea posts ) and managed to get few hundred pips along the way.
Going forward, RBNZ (Reserve Bank of New Zealand) may take advantage of current situation and talk NZD/USD down further. As 0.7000 is the key in case of AUD/USD, 0.6500 support level is the key for NZD/USD. Door towards 0.6000 or even 0.5500 is wide open for NZD/USD.
So keep playing it from the short-side until something changes drastically. Our EUR/USD short is playing out nicely and patient to look for more short entries have been rewarded by yesterday's bounce towards 1.0500, as we outlined earlier.
Going forward, RBNZ (Reserve Bank of New Zealand) may take advantage of current situation and talk NZD/USD down further. As 0.7000 is the key in case of AUD/USD, 0.6500 support level is the key for NZD/USD. Door towards 0.6000 or even 0.5500 is wide open for NZD/USD.
So keep playing it from the short-side until something changes drastically. Our EUR/USD short is playing out nicely and patient to look for more short entries have been rewarded by yesterday's bounce towards 1.0500, as we outlined earlier.
