Yesterday we talked about how AUD/USD is going to suffer from rising US dollar and also mentioned the reason for AUD/USD to remain pressured. ( Please check the link ) Similar argument can be made for NZD/USD too. Many hated the rise from 0.6500 to 0.7500 and tried to short it in vain. To stick with the short US dollar stance, we were long NZD/USD too ( which you can check out from previous trade idea posts ) and managed to get few hundred pips along the way.
Going forward, RBNZ (Reserve Bank of New Zealand) may take advantage of current situation and talk NZD/USD down further. As 0.7000 is the key in case of AUD/USD, 0.6500 support level is the key for NZD/USD. Door towards 0.6000 or even 0.5500 is wide open for NZD/USD.
So keep playing it from the short-side until something changes drastically. Our EUR/USD short is playing out nicely and patient to look for more short entries have been rewarded by yesterday’s bounce towards 1.0500, as we outlined earlier.
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