Trying NZDUSD higher here.
Overall i think that the USD narrative is weakening on weaker US data recently. We saw some weaker US labour data and i believe US ISM service PMI data will come out weaker this week as well. The China narrative i think could be changing, we've seem a lot of stimulus news the past week or two and china stocks are moving higher. Meanwhile the china sentiment is very low and positioning is also fairly short. NZD should benefit from better china news/rising china stocks.
Commodities are moving higher, chinese stocks are moving higher, risk sentiment is good and i think US yields will continue to grind lower. There are triple tops in the 2 year yields and 5 year and false breaks higher on 10 year and 30 year yields. lower US yields and higher stocks should benefit currency pairs like AUDUSD and NZDUSD.
Sentiment is very low for the pair and we've just entered extreme short positions on the pair which should help limit downside and could help push the pair higher if these things continue.
We're also extremely low on the daily RSI and we've just moved out of the seasonal NZDUSD weakness.
You can see on the chart that we've broken out of the downtrend so now seems like a good time to try a move higher.
Not trading/investment advise, feedback welcome!
Overall i think that the USD narrative is weakening on weaker US data recently. We saw some weaker US labour data and i believe US ISM service PMI data will come out weaker this week as well. The China narrative i think could be changing, we've seem a lot of stimulus news the past week or two and china stocks are moving higher. Meanwhile the china sentiment is very low and positioning is also fairly short. NZD should benefit from better china news/rising china stocks.
Commodities are moving higher, chinese stocks are moving higher, risk sentiment is good and i think US yields will continue to grind lower. There are triple tops in the 2 year yields and 5 year and false breaks higher on 10 year and 30 year yields. lower US yields and higher stocks should benefit currency pairs like AUDUSD and NZDUSD.
Sentiment is very low for the pair and we've just entered extreme short positions on the pair which should help limit downside and could help push the pair higher if these things continue.
We're also extremely low on the daily RSI and we've just moved out of the seasonal NZDUSD weakness.
You can see on the chart that we've broken out of the downtrend so now seems like a good time to try a move higher.
Not trading/investment advise, feedback welcome!
Comment:
closing at 0.5895
Comment:
going to re-enter at 0.5879
Comment:
taking it out at 0.5879, will reassess