Last week I talked about a possible dollar correction or reversal, which worked out fine and UCHF has hit both of our targets as per this article.
All trades from last week are still valid, so there is no point to do the same analysis again. I will focus on NZDUSD this week. It is very close to a strong demand zone for shorts, so its worth to look at. Last week, most NZ news were positive, central bank didn’t lower rates, despite big pressures to do it and YET the New Zeland dollar didn’t make as big of an upmove, which makes me think that bulls are now too exhausted. NZ is hovering below the 6900-7000 level and there couldn’t be a better place to short this pair. Mainly because its easy to place a SL, above 7000. But let the USDCAD trade from last week be a lesson for you, the tight SL I had planned for it, was hit early in the week and then price reversed immediately into the predicted direction. So when it comes to NZDUSD, even though 7000 is a strong resistance area, I wouldn’t be surprised, if it made a quick fake spike above, to hit all the SLs there and then be sold off heavily. So the 7050-7100 area is probably a better spot for a safe SL. When it comes to targets, first would be 6750-6775 and second 6500-6600.
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