Short Kiwi Dollar Sale now in Play

NZD/USD (0.6753)

Points to consider in this Kiwi Dollar Forex market:

• The Kiwi Dollar is now trading below trend line support. Points to a possible double top in play.
• Short sale triggered aiming for 0.67 and lower.
• Trade strategy: Short Kiwi Dollar at 0.6775

The NZD/USD Forex market has broken below a key trend line support, as seen on the below daily MT 4 chart. We will also use this chart for today’s technical analysis. There is a possible double top chart formation now in play below the pivot at 0.70. This argues at the return of the overall down trend in this Forex marker and further losses ahead for the New Zealand Dollar.

Kiwi Dollar Technical Analysis

Let’s talk about the NZD/USD daily technical analysis before today’s trade strategy. A daily close below the near term support barrier at 0.67 will challenges the next downside barrier that lies at the end of a small congestion zone. This congestion area run from the horizontal pivot at 0.6575 to 0.6618. The alternative New Zealand Dollar technical analysis, should the NZD recover, notes the first upside technical barrier at the end of a congestion area. This area from 0.6785 to the April 27 low at 0.6808. A break above this level challenges the area running from 0.6888 to a former support level at 0.6925.

Trade Strategy

Let’s talk about today’s NZD/USD trade strategy. Risk to reward analysis calls for an actionable short NZD sale at this time. I will attempt this short sale at 0.6775. The first target is 0.67. For now, the stop loss will activate on a daily close back above 0.6808. Once the first target is achieved, I will book half the profits and leave the remainder of the trade open. I will also move the stop loss to break even.