Favorite Trades Still NZD/USD and GBP/USD Shorts
There isn't much for me to add today...my favorite 'ideas' remain short NZDUSD and GBPUSD. A 3rd of a 3rd wave decline could extend below .8100 this month (161.8% extension at .8075...November low at .8052). The NZDUSD is nearing the trendline that extends off of the March and April lows but the real waterfall decline would probably begin below .8360. .8470 is near term resistance. There is event risk tomorrow.
The GBPUSD may be sucking in longs before the next drop. Event risk is Thursday but given reward/risk, I'm happy to be short in front of BoE.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.