NZD/USD: Bearish outlook after AUD/NZD breaks higher

Again I’m on the sidelines here after failing to read this move correctly. The immediate break in AUD/NZD above important technical resistance between 1.1185/1.1220 is the driving factor and even though I’m overall a dip-buyer in NZD/USD, I think I’ll keep my ammunition dry for now. Lower levels towards .8225 certainly look possible. NZD/CAD is another pair which has taken a decisive bearish turn and this pair is also worth watching (rather than trading) as there are often big macro players at work here.

  1. Hi Sean,

    I took a short at 1.1180 yesterday looking for a 40 pip drop before aud/nzd goes long again anyways got stopped out. It does look like a breakout do you think we can try a long at 1.1180-1.12 for 1.13


  2. That certainly makes sense to me Yass. Must admit I haven’t been v active in this cross recently so don’t have v strong view on levels. But, buying dips now the obvious play. Have look where trailing stops might be and put bid in 40 pips below there.

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