As mentioned in Tuesday’s Monetary Asphyxiation, Asian Session Morning blog, NZD/USD is precariously poised at support.
With the Reserve Bank of New Zealand shifting from a neutral to easing bias and signalling it is prepared to cut rates last month, NZD/USD has come under a bit of pressure.
After the good old fashioned jawboning, the Kiwi gave up over 500 pips from it’s most recent swing high that we were also talking about shorting.
With the Fed rate hike theme now back in play and USD strength kicking back in, I am happy selling any sort of Kiwi weakness here in this zone to possibly look to get in early and play for a break.
Taking a look at the Weekly chart, you can see that there’s not much left in terms of support below that level and things could possibly get ugly quite quickly.
Position yourself for these big moves before they actually happen.
Let us know how you’re looking to trade the Kiwi? Leave a comment below or mention @VantageFX on Twitter.
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