New NZD/USD idea

NZD/USD has printed a double bottom pattern and many believe Janet Yellen will try to take some of the heat off the USD.

NZD
Source: Bloomberg

Given the current central bank stances, I feel being long NZD/USD would be the best way to take advantage of a potentially weaker USD this week.

On the daily chart there is strong supply into $0.7600 and I believe a good tactical trade this week involves being long NZD/USD at $0.7350, with a stop at $0.7270 for a move targeting $0.7550. With no discernable trend at present I’ll keep my position small.

There seems to be a growing view that Janet Yellen will look to take some of the heat off the USD move. In my opinion, being long NZD/USD would possibly be the best way to trade that view.

NZD/USD
Click to enlarge

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