07/05/14 - NZD/USD Daily Analysis

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Today we expect to see a drop in the NZD/USD currency pair, this is because RBNZ Governor Wheeler said the currency is overvalued and the current level is not sustainable, adding that the RBNZ may intervene if fundamentals worsen.

We will be looking to short NZD/USD in the current session off the back of these comments from Governor Wheeler from the 0.8700 level with a stop loss at around 0.8745, which is just above where the market got sold off after the comments from Wheeler, targeting a profit area around the low 0.8600 level for today.
 
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Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Hi davepwajok

Fundamentaly the NZD is a strong currency, however the sentiment for today is sell because of the comments from Governor Wheeler- saying that the currency is overvalued.

Hope this helps
 
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