Commodity Dollars At Risk If Greenback Finds Support
I continue to wait for a break below 0.6800 for a short NZD/USD position. We have seen the pair trade above the psychological level, but a clear triangle formation signals a potential breakout. For a longer-term trader a better entry may be below 0.6740-50.0% Fibo of 0.5832-0.7635. A strong US NFP report has generated a spike in risk appetite which is lending support for the pair.
The USD/CAD is again threatening trend line support and another hold could lead to the reversal that I have been expecting. Upside potential remains to 1.0484-50 day SMA. However, strong Canadian fundamentals and building optimism has fueled “loonie” support which could lead to a break below support, exposing a move down to parity as it becomes increasingly difficult to justify a greenback premium.
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