Commodity currencies are on shaky footing lately, but it seems that the Kiwi is the weakest of them all.
Here’s a short NZD play on my radar.
AUD/NZD Trade Idea
This pair just recently busted through the resistance at the 1.0850 minor psychological mark then hit a ceiling at 1.0940.
A correction seems to be taking place, with price already dipping to the 38.2% Fibonacci retracement level. If this is enough to keep losses in check, AUD/NZD could recover to the swing high and beyond.I’m hoping that a larger pullback could offer a better price to buy, so I’ve got my eyes on the 61.8% Fib that’s close to a rising trend line, the 100 SMA dynamic support, and a former resistance level.
At the same time, I’m worried that I might miss the boat if the rally continues from these current levels!
Because of that, I’m considering scaling in, with one long position at market and a buy order at the 61.8% Fib level.
It looks like there’s enough bullish momentum in play, as the 100 SMA is above the 200 SMA while Stochastic seems ready to pull higher.There are no major catalysts from both economies, though, so it looks like the latest round of developments might keep the climb going. Recall that the Kiwi sold off sharply earlier this week when the New Zealand government announced tax measures to curb the property price surge in the country.
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