NZD/USD Possible Sell Setup at 0.7217

The pair plunged in tandem with stock markets as risk aversion intensified. News that Dubai has liabilities in excess of $59 billion and will ask to negotiate an extension of maturities spurred demand for safe haven assets such as the Dollar and the Yen.

NZD/USD, declined over 300 points from a 0.7332 high to a current intraday low at 0.7026.

Outlook has now turned bearish as risk aversion looks to prevail, however, be careful of near term rebounds. Preferred strategy looks to sell on rallies.

As the Kiwi nears the 0.7025 level, the pair will find initial support at 0.6977, followed by  0.6935 and 0.6870.

Above current levels (0.7060), the pair finds initial support at 0.7097, followed by 0.7143, 0.7181 and 0.7217.

TREND

Near Term: Bearish
Medium Term: Neutral
Long Term: Bullish

Trading levels in play:

Traders can look to sell on rallies to the 0.7217 area as new sellers may emerge. However, there are no solid trade recommendations at the moment for intraday moves.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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