today i want to share with you some of my analysis on NZDUSD. In order to have a complete vision we have to go on higher timeframes (for me the daily).
In this particular case we have a lot of different strategies that are pointing at the same level. As you can read in the chart we have fibs, harmonic moves, harmonic pattern, and most important,...
NZD/USD has reached significant fib levels and with price moving out of overbought we at Carleton Capital feel this pair is ready to be shorted. Our AUDNZD algorithm is flagging this as a SHORT at market - .7314.
Our STOP is shown at .7347 so this trade carries a 33 pip risk.
NZD/USD has strengthened impressively over the last 20+ hours but there are clear signs this rally is exhausted.
RSI on H1 is over 80 and this is a decline from earlier levels.
We at Carleton Capital are pacing a SELL STOP on this pair from .7287. Price is currently .7299.
We have a tight STOP at .7311 for a 24 pip risk.
Target is the 200 sma initially at .7160...
The break up of the bull flag would be super bullish. The green support has 3 hits. If Kiwi stays within the declining channel and breaks down that green support, it would clearly open the space underneath for a steep drop. All in all, it is a great technical picture which can be played both ways depending on the direction of the break out.
traders, i hope you are all ready for this week of firework - i will be continuing to look at carry trades as we expect some reallocation to the kiwi as investors re-consider the RNBZ outlook. Moreover while futures point toward further upside in this weeks milk auction
as many of you have seen my related idea which will be the long up til .75x levels (see...