The New Zealand Dollar remains under pressure early Thursday as lingering U.S.-China trade tensions continue to weigh on sentiment. Sellers are also responding to heightened concerns about global growth and the news that the Trump administration is considering Huawei-like sanctions on Chinese video surveillance firm Hikvision.
Bearish traders are also betting on a further reduction of the cash rate before year end. That could be the reason why the New Zealand Dollar failed to draw support from Wednesday’s better-than-expected retail sales data.
The release of the Fed minutes on Wednesday failed to generate much movement in the currency. Even with the Fed saying it would leave interest rates unchanged for a lengthy period of time, the divergence in policy between the U.S. Federal Reserve and the Reserve Bank of New Zealand still favors the U.S. Dollar.
Lets go to the charts to see if there are more shorting opportunities on this forex pair.
Monthly Chart (Curve Time Frame) – monthly supply is 0.76000 and the monthly demand is 0.64000.
Weekly Chart (Trend Timeframe) – the trend is sideways with a downward bias.
Daily Chart (Entry) –I missed a opportunity to short this pair some weeks ago at the daily demand at 0.66988.
The fact that price is now low on the curve (monthly chart) and price on Friday closed above the Sunday, Monday and Tuesdays highs, momentum at the moment is to the upside. Thus, there are no trade set-ups to short this pair at the moment.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.