New Zealand Dollar Mini H&S and Bearish FlagJune New Zealand dollar has created a mini head and shoulders, plus a bearish flag. USD was up sharply today. Looking for more gain on USD and possible fall of the NZD. Next downside target is 78.6 FIB, .6914. This would start to fill out the last bit of the Bearish BAT pattern.
Trade ideas
New Zealand DollarNew Zealand dollar has produced a tweezer top reversal pattern. Friday's rejection of higher prices suggests a lower price Monday. The USD has produced an evening star doji, which might produce one more push up to finalize that last shoulder of the H&D and then head down. NZD also produced a evening start reversal Tuesday indicating a reversal on Thursday.
On to RBNZ.. Watch the Head and ShouldersKiwi likely to come under pressure on RBNZ rate cut, which is already priced in but the current risk off sentiment could weigh on the New Zealand dollar (N61!) in the near term. Watch the head and shoulders pattern, which will be triggered on the break of the rising neckline support.
Downside targets: $0.7030 and $0.7000
***Long Opp***All signals are a go on this one as well.
One could buy the future contract or sell a put option for a more conservative approach.
Futures trading involves risk of loss and may not be suitable for all investors.
The Kiwi in Action Reaction MomentumStill the strongest major currency in a clear up trend. The official cash rate of RBNZ has been held at 2.75% since March 13th, 2014 (after the .25 pp rate hike), which keeps the investors interested in NZD. The best FX bets in favour of NZD would be against the JPY, USD and the CAD.
