Short

$NZDUSD: Tight stop, big target...

Updated

I think the Kiwi offers a tremendous reward to risk ratio on the short side here. The situation with persistent inflation and rising energy prices is certainly a headwind for the economy, combined with Powell's increased determination as per his last speech at Jackson Hole, has helped bears gain ground here, triggering both a daily and a weekly down trend simultaneously. The invalidation for this signal is a move back above the 0.6255 mark, in which case a short squeeze would happen. Currently, the chart signal points to a decline towards 0.5762 by October 21st, the latest.
Overall, good setup in the currency market to add to a more holistic trading portfolio (like mine). Any market that adds uncorrelated returns, is a good use of leverage/cash.

Best of luck,

Ivan Labrie.

Note

Here's the monthly trend in as a bonus:

Note

Trade closed manually

I'm not in this one anymore, banked in profit and didn't reshort but it flashed a signal in the daily today.

Trade closed: target reached

Note

Daily trend now up:

Could be a substantial reversal...

Note

It was a reversal...trend is now up.

IvanLabrie

🔒Want to dive deeper? Check out my paid services below🔒

ivanlabrie.substack.com/

Also on:

Related publications

$DXY: New weekly signal spotted...

by IvanLabrie

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.