KIWI Too OVERVALUED Vs The USD! Will it Slump To 64 cents ?
With the RBNZ already killing off the NZD by being more dovish than expected in their rate announcement yesterday, the kiwi fell against the USD overnight erasing in the process nearly 2 weeks gains!. For what many thought that the triangle has already broken to the upside just by the end of last week, it now seems it was a false breakout and rather unsurprisingly its now threatening to break the trendline of the triangle!
If the break does occur, the price will aim to test the area that had been tested before in the previous swing some few months ago. 0.64000 becomes the immediate target of this potential breakout! Moreover fundamentally, the kiwi is too overvalued against the USD which is also visible in the both of their interest rates with USD having a more higher interest rate. This year the kiwi is being speculated to depreciate against the USD and this might start to happen once the trendline is broken. adding salt to the wounds, the RBNZ might even cut OCR in their nexr meeting which may very well trigger a small rally enough to dump the NZD and pile the selling pressure.
The RR on this one is pretty good too (1:1.5). i am already SHORTING the NZDUSD but from the technical perspective its best to wait until the trendline breaks and retests before making an entry.
this is just my analysis on this pair and its not a trading signal. shall the criteria meet i will post the trade details in the thread. cheers
If the break does occur, the price will aim to test the area that had been tested before in the previous swing some few months ago. 0.64000 becomes the immediate target of this potential breakout! Moreover fundamentally, the kiwi is too overvalued against the USD which is also visible in the both of their interest rates with USD having a more higher interest rate. This year the kiwi is being speculated to depreciate against the USD and this might start to happen once the trendline is broken. adding salt to the wounds, the RBNZ might even cut OCR in their nexr meeting which may very well trigger a small rally enough to dump the NZD and pile the selling pressure.
The RR on this one is pretty good too (1:1.5). i am already SHORTING the NZDUSD but from the technical perspective its best to wait until the trendline breaks and retests before making an entry.
this is just my analysis on this pair and its not a trading signal. shall the criteria meet i will post the trade details in the thread. cheers
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