justatrader

NZDUSD shoots above 0.70 as RBNZ holds rates steady

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
The RBNZ did not cut rates yesterday and did not jawbone the Kiwi's exchange rate. The resistance at 0.70 has now been breached convincingly and any dips to 0.70 could remain a buy, if validated by price. To the upside next level of interest is 0.72, July 10, 2015 high. But looking the Stochastics here, there is a strong hidden bearish divergence which signals to a correction, validating the view that NZDUSD             could slip to 0.70.

0.72 could be likely achieved only if support is formed at 0.70. For the moment, weak long positions above 0.7127 could remain at risk for a correction to 0.70.

Technically, support should have been established at 0.69 but the lack of this could mean a possible slide to 0.69.

Personally, I wouldn't be looking to go long at 0.70, especially with a risk of a dip to 0.69 looming.. unless the technical narrative changes. FOMC is up next Wednesday, 15th June.

Trading idea: lower time frame chart could signal a counter trend short opportunities.
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