New Zealand dollar rally may be running out of puff
NZDUSD began this week finding resistance at the 0.7350 region, which has capped gains for the pair throughout 2017.
The price action since June 2017 appears to be forming a rising wedge, a technically bearish pattern. Momentum is also at risk of reversal to the downside, as the MACD line pulls away from its signal line.
We initiate an entry stop at 0.7250, just below the low on July 4, 2017. The stop loss is at 0.7350, which is the resistance region mentioned above. Take profits at 0.7080, which is the 50% retracement of the up move since May 2017.
Management and risk description
Time horizon: Two to five days.
Inquiries and comments welcome:
- Tareck Horchani, head, Sales Trading APAC, email: firstname.lastname@example.org, tel:+65 63037651
- Andrew Bresler, deputy head, Sales Trading APAC, email: ANBR@saxomarkets.com.sg, tel: +65 63037614
- Kay Van-Petersen, macro strategist, email: KVP@saxomarkets.com.sg, tel: +65 63037622
- James Kim, sales trader, email: JKI@saxomarkets.com.au, tel: +61 282679009
- Edmund Liu, sales trader, email: email@example.com, tel: +65 63037704
— Edited by Robert Ryan
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