The kiwi dollar has fallen for 11 straight weeks against the US dollar (12 for the British pound), and I have the vague feeling that we may see the NZD/USD initiate a corrective bounce starting this week. Prices gapped downward to hit $0.6641 last night and are currently trading at $0.6697. I'm waiting to see how the US dollar performs with the return of North American traders today, but it's clear to me that the NZD/USD currently offers a decent hedge for anyone who's long the US dollar and not wanting to cut decent positions on other currency pairs. Note that if this technical bounce doesn't take shape within the next 2-3 days, the NZD/USD will still have a major weekly support at $0.65/66. I'll be watching any signs of a market reversal in this price area.
Conclusion : we need further information this afternoon before being able to really establish an agressif bullish stance on the kiwi dollar, but for the moment the NZD/USD is a good hedge for traders maintaining bullish bets on the US dollar.
***Please see my alert on the GBP/NZD (www.tradingview.com/...negative-divergence/) for a similar trading idea.
Conclusion : we need further information this afternoon before being able to really establish an agressif bullish stance on the kiwi dollar, but for the moment the NZD/USD is a good hedge for traders maintaining bullish bets on the US dollar.
***Please see my alert on the GBP/NZD (www.tradingview.com/...negative-divergence/) for a similar trading idea.
