Finally a trade for the week. The Australian dollar is in a steep decline this week and the NZD typically moves in lock-step with it. The Aussie had another very active Asian session which didn’t leave much room for a continued move downward during the UK session. The NZD was more subdued during the Asian session which made it more attractive to short by comparison.
As the NZD continued to make lower highs and drop, an entry is found requiring a larger stop loss than we have been using lately. The key to the trade was to get the risk out as soon as possible. The first area to get through would be the Asian session low, followed by yesterday’s low, then on to our target levels.
We see the Asian session low get briefly retested before price bungees downward to our target zone where we are happy to get out and leave this atypical week of limited opportunity behind us.
Both the AUD and NZD are at critical levels in their descent. The AUD continues to weaken and listening to RBA Governor Stevens, would have us believe that it will continue significantly downward with the NZD following its trend.
Good luck with your trading!
Hoping for a much better week next week.
Enjoy your weekend!