NZD/USD has popped a few points in the early hours here on Monday with only New Zealand markets underway:
The marking higher of the kiwi $ is a market dynamics move rather than an important shift in fundamentals. If you think the new government will solve all the problems the NZ economy is facing and thus the NZD will begin a solid uptrend, well, good luck with that.
As such the pop in NZD/USD sets up a fade opportunity. I’ve scribbled a few horizontal lines on the chart below as a guide to levels to watch for trade placement, but I am sure ForexLive traders out there can do a better job. In the comments please folks!
This article was written by Eamonn Sheridan at www.forexlive.com. Source