Following up with the short NZD/USD recommendation from the previous day, the pair extended the decline from the previous day and triggered the sell entry I placed at 0.7056, the 100-Day SMA, and I am well in-the-money as the exchange rate pushes to a low of 0.6966 on Tuesday. As a result, I will look to pull down the stop to 0.7000 ahead of the FOMC policy meeting minutes as the greenback is likely to face increased volatility following the comments from the central bank, but will maintain the target at 0.6885, the 7/7 low, as the 20-Day SMA (0.7126) now crosses below the 50-Day SMA at 0.7128.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
