The NZD/USD pair tends to follow the overall ‘attitude’ of commodities. This makes it a ‘risk on, risk off’ pair, and thus we should pay attention to the futures markets when trading it. The New Zealand economy is heavily influenced by agricultural markets, as it is a major exporter of those products to Asia.
Risk 0.5%
Trade can be taken during the 24-hour period.
Long Trade 1:
Buying NZD above the 0.72 level
Stop loss at 0.7180
Take half profit at 0.7230
Take full profit at 0.7325
NZD/USD Analysis:
The pair has seen a lot of bullish pressure over the last several weeks. The market will continue to see buyers return, but the volatile nature of this pair tends to scare a lot of newer traders away. However, the market does tend to trend for long periods of time. The pair of course can pull back drastically, but in the end – as long as we see a reasonably positive market sentiment – we should continue to see NZD strength.
There are no major announcements that I am watching for this pair today.
