In this column I reach for a short trade in the EUR/NZD, where the New Zealand dollar is also referred to as kiwi. The EUR/NZD has been under pressure for some time and is currently stabilizing between 1.55 and 1.60. This consolidation is not yet a guarantee for a strong recovery move. In fact, the trend I expects a further decline, with an acceleration once the low of 1.56 reached at the beginning of this year is broken.
EUR/NZD weekly chart
The weekly chart shows the sharp downward trend that started in early February. The orange pma line (a custom-made average line) in the chart indicates the downward trend by means of its orange color. This indicator was generated by the M2W-TSSytem. The way is in principle clear for a further decline to (far) below 1.50.[Lees meer…] overForex Trade of the Week: EUR/NZD short