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.

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.

Click to enlarge

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.