NZD/USD Limit Sell at 0.7035
March 11, 2010 - 5:50 am by Juan P. Bejarano · Leave a Comment
The New Zealand Dollar fell sharply after the RBNZ rate decision as the bank was viewed more dovish than expected.
The Bank reiterated it will start hiking rates by the middle of this year, but warned that higher funding costs would reduce the extent of further rate rises. In addition, Governor Bollard noted that the future normal level of the Official Cash Rate will not be conducive to the carry trades.
Traders scattered to exit their positions driving the pair through the 0.7000 to a 0.6976 low.
Trend:
Weekly : Sideways
Daily: Sideways
Hourly: Sideways
Support & Resistance:
From current levels, 0.7010, the pair finds initial resistance at 0.7037, followed by 0.7073, and 0.7099.
Key support to watch is the 0.6976 where a break of such would open targets to the 0.6947 level, followed by 0.6905 and 0.6852.
Strategy:
GTNYC Limit Sell 1 Unit @ 0.7035 Targets: T1 0.7015 – T2 0.6947
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.
Limit Sell 2 Units @ 0.7073 Average price 0.7060 T1 0.7040 T2 0.6850 Risk: 0.7120
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.
Please continue reading disclaimer here!
