Forex Trade Of The Day: NZD/USD Hits 4-Week High
Littlefish FX | Feb 04, 2016 06:00AM ET
Trade Of The Day: The NZD/USD hit a 4-week high against USD at 0.6697 on Wednesday. During the Asian session, the NZD/USD surged due to the better-than-expected job figures and received another boost declaration from RBNZ Governor Wheeler, reducing the possibility of another cut rate.
A top official at New Zealand’s central bank on early Thursday said he would prefer a lower local currency, something that is lower than where it is today. NZD/USD has led the move higher for commodity currencies and topped ahead of 0.6700, with strong employment data and remarks from RBNZ Governor Wheeler supporting the pair before the USD started to come under pressure. Support now seen at 0.6600, 0.6500 and 0.6350; resistance at 0.6725, 0.6900 and 0.7025.
Trade Idea: After banking 100pips in profits from this week's long trade trigger, I am monitoring price action in the kiwi looking for a pull back to retest the base breakout to re-engage the market on the long side. SO I will be looking for an equidistant swing to retest bids at the breakout level .6550/.6500 to reset longs to target a test of the topside of the current range at .6900 as per the chart below.
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