By Tamar Mehr
The Kiwi Dollar has shown weakness across the board, staging a collapse against its major trading partners. A novice trader might jump on the south-bound train on the most commonly known pair - the NZD/USD. But more experienced traders will ask themselves the question, which pair presents the best trading opportunity at this point in time? Which pair allows for a higher probability trading opportunity, as per my trading strategy?
Let me take you through my favourite NZD chart at the moment – NZD/JPY - and share with you the reasons why this market has made it to the top of my watch list.
On the monthly chart below, we can see that though the uptrend was broken as the market again tested the 83.5 level, the bulls were unable to keep price above this level. The bears have begun to take control as price has started moving south with last month’s bearish candlestick already been broken by the low of this month. On the daily chart, price action is currently over-extended from its MAs, which could indicate that a pullback is on the cards. The momentum indicators are converging nicely to the downside, telling me there is still selling pressure.
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