GOOD DAY SUNDAY TRADERS!
From the desk of The Trading Regime, we have discovered an opportunity for NZDCHF.
Here are some simple reasons for taking a trade to the downside on this pair:
Weekly Bearish price action candlestick with closure to the bear side
Break in Daily Structure
Daily Bearish Engulfing candle
Potential correction in CHF currency this...
After we now have finished an equal lenght upmove pair we are right in the zone that looks interesting when you look left (i dont like to call that resistance or anything like that...).
We are at a decending trendline as well.
Look for the orgin of the downmove to determine where your stopploss must go.
Dont trade more than 1% risk.
Learn how to calculate lot...
NzdUsd - H4 I prefer shorts on current levels due to technicals and market sentiment which favours a stronger dollar at current levels. Major trend is still down for dollar so this would be considered a counter-trend trade
i short Nzdusd because:
he is overbought
he outperform and all currencies even the Cad who is the most strong after
he is touch many time the down T-line since 27july high and no pass
he is supported by commodities
so i try a small short for 50 pips
2 x 1lot
will cut 1 lot at +15-20 pips and make the second lot with SL at +5-10 pips for secure gain and be safe
short eh kiwi dollar he is just under ma50 weekly and is big resisantance to pass
even he was supported by a weakness dollars but more by copper he need a consolidation from my view
Aslo dollars should rebond today or the new years 2 january this selloff has no sense
short at 0.7120
gain 70 pips
Stop los 0.7154
Fundamentally: increasing monetary policy divergence between the Fed and RBNZ.
Technically: the Kiwi has broken its 2016 uptrend, and is retesting the underside of the 2016 trendline.
Fair value is around 0.65 given the current economic outlook for NZ and USA.
NZDUSD touched a 14-month high yesterday at 0.7344.
However, I believe it is overpriced, because:
Fundamentally: the RBNZ are in a easing cycle, and cut rates at their last meeting. However, RBNZ struggled to devalue the NZD with their rate cut.
Thus, I believe they will take a different approach in the coming months to devalue the NZD - perhaps in the way...
NZDUSD has been in a downtrend on the Daily chart for a very long time. We may be in the middle of another retracement giving us a great opportunity short into strength. This will be a Huge trade and would require a 350 Pip Stoploss. But the Reward is over 1,200 Pips. This is an excellent opportunity for a Position Trader as it will take months to play out.