AdrianRaymondFX

Shorting the kiwi dollar is a risky move at current levels

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
366 4 4
The kiwi dollar has fallen for 11 straight weeks against the US dollar             (12 for the British pound), and I have the vague feeling that we may see the NZD/USD             initiate a corrective bounce starting this week. Prices gapped downward to hit $0.6641 last night and are currently trading at $0.6697. I'm waiting to see how the US dollar             performs with the return of North American traders today, but it's clear to me that the NZD/USD             currently offers a decent hedge for anyone who's long the US dollar             and not wanting to cut decent positions on other currency pairs. Note that if this technical bounce doesn't take shape within the next 2-3 days, the NZD/USD             will still have a major weekly support at $0.65/66. I'll be watching any signs of a market reversal in this price area.

Conclusion : we need further information this afternoon before being able to really establish an agressif bullish stance on the kiwi dollar, but for the moment the NZD/USD             is a good hedge for traders maintaining bullish bets on the US dollar             .

***Please see my alert on the GBP/NZD (https://www.tradingview.com/chart/GBPNZD/ieFmyC8R-GBP-NZD-may-fall-back-to-2-27-with-negative-divergence/) for a similar trading idea.
Fitch latest comments are supportive. https://www.fitchratings.com/site/fitch-home/pressrelease?id=987445
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DevonMerancio
a year ago
Do you maintain the same opinion on this pair?
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BTCMarket PRO DevonMerancio
a year ago
I'm watching nzdusd for an entry as well. Exports are weighing on this pair from the China situation as well as dairy prices falling but technicals point to a decent bounce coming.
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And we're back up to $0.675
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