Earlier in the Asian session, a series of negative sales data from New Zealand increased the Kiwi’s selling pressure. Monthly Electronic retail Card sales didn’t beat expectation printing a value of -0.3% against a monthly expansion consensus of 0.5%. This however didn’t look like it was a mover in the long term considering the fact that the year over year electronic card sales move a notch higher to 5.6% from a 2.6% figure recorded earlier. Other than this data, there are no economic data releases from both economies that are shakers. What is apparent though it the CHF strength across the board despite the soft market.
I would like to shift my focus on the NZDCHF and my aim today and in the next few weeks is to liquidate the NZD. In fact doing this right now is very timely given the 3 bar reversal pattern that has formed in the monthly chart. This month’s candlestick will be a confirming the bear trend that is still at infancy. The weekly and monthly charts are very bearish and entry for this swing trade will be in the 4HR chart. Look at the doji February candlestick and the sell signal that was printed in the monthly chart with the March candlestick moving lower and pointing to be a bear move? If anything, this trend should continue for the next 2-3 months and therefore, I’m a NZD bear at the moment.
With this hindsight, my trading will be as follows:
Stop Loss: 0.7020
Take Profit: 0.66-Hold this for some time.
Have a good trading day.