FX:NZDUSD New Zealand Dollar/U.S. Dollar
Kiwi played a small trick on bulls yesterday by selling off after very good improvement in the unemployment rate (5,6% vs 5,8% expected). Nevertheless, I like the current area for a possible longer term position towards new highs. SL is very small but the reward is huge.
Nice clean chart and nice set-up from a technical basis with good R:R, however your target would be all time high and in light of the sharp decline in dairy prices the currency pair could hit a 5 month low below 0.8400. Falling dairy prices is a serious problem for New Zealand. Dairy prices dropped 8.4% at the recent Global Dairy Trade auction, which adds to the 8.9% decline at the last auction. Since February, prices are down 41%, which is disastrous for terms of trade because dairy accounts for approximately a third of New Zealand's exports by value. I would love to take this one long with you but I think I'll wait for confirmation this time around. Good luck with your trade mate.