Commodty Dollars look to Extend Rally
Waiting for the NZD/USD to break down has been an effort in futility as the pair rose to test the 50-day SMA at 0.7092. However, patience is a virtue and I will sit tight waiting for the move below 0.6800 for a short. A break below the 200-Day SMA at 0.6975 could lead me into a small short just to keep my attention.
Despite potential pitfalls risk appetite continues to gain steam, which has lead to the com-dollars quietly putting together a solid rally. Like my colleague Jamie Seattle likes to say sell a leaper buy a creeper. On that note a case could be made for a long AUD/USD or short USD/CAD position. However, we are so far onto their rallies that the risk reward may not be there. A short USD/CAD appears to have the best profit potential with parity as a solid target. The pair broke below channel support and the slew of bullish data has put the BoC at the top of the list of the next central bank to begin tightening.
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