My picks: Range Trade NZD/USD
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
The New Zealand dollar continued to benefit from the rebound in market sentiment, led by the better-than-expected earnings release in the U.S. however, as Fitch ratings cuts the long-term credit outlook for the $128B economy, the downturn in the economic outlook could lead the NZD/USD lower over the near-term. As the pair continues to hold a broad range, I have placed a short-entry at 0.6368, the 6/10 high in an attempt to range-trade the pair, and have placed my target at 0.6254, the 6/5 low, with the stop at 0.6414, the 5/29 high.
