Trade update from a previous video I posted on buying NZD/USD.
The fundamentals point towards a move to $0.75 on the exchange rate that offers a move of up to 5% appreciation in the KIWI.
Fundamentals driving the trend.
1.) Lower interest rates in the U.S no longer makes the U.S Dollar an attractive high yielding currency.
2.) $2 Trillion Fiscal stimulus...
We take a closer look at why the U.S Dollar is getting weaken on a fundamental level first, to then understand the NZD/USD upside momentum that has now broken a key technical resistance and offering a buy side opportunity.
Good Morning Traders,
The trend line on the NZD/USD has been broken. I'm simply waiting for a retest of the trend line for a potential buy position. The RSI is currently oversold, therefore a pullback should give the RSI some room for movement.
I'll keep you all updated on this position!
Many thanks and good luck,
Watching the big picture, we are still on an uptrend on the weekly and daily time frame which makes me look for trend continuation opportunities. Currently price is at a very sweet spot while RSI approaching oversold levels. Great risk:reward if entered at market if conservative stops and targets are used as illustrated on the opened long position in the chart.
Fundamentals:- The improved GDP from New Zealand last week really helped the downside in the GBP/NZD pair. Although the GDP figure was good it does not change the fact that CPI in NZ is still very low and the recent rate cut from the RBNZ brings into light the posibility of another in the next meeting. UK CPI is due out next week and expected to be better with a...
The futures market is showing a forcast of a huge increase in price over the next 12 months in the dairy prices which make up 7% of the New Zealands GDP. I am expecting to see an increase in the strength of the NZD over the coming months as it has been the weakest currrency for some time and dropped considerably against most major currencies. I am looking at the...