Selling NZD for over 300 pips (01/10/2014)

Looking at the markets today we can see that the ongoing trends continue to prevail. A strong USD , a weak EUR while everything that has to do with Gold and Silver(NZD,AUD,CAD) also continue to drop. How can we trade this ?

currency power 20141001

A quick analysis using our Currency Power indicator that shows how strong a currency is in the scale of 0 to 10 gives the above picture.

  • A Super Strong USD and strong JPY
  • Weak EUR ,AUD,CAD
  • NZD ,CHF neutral

Based on the above it is generally good idea to buy USD and sell EUR, AUD and CAD.

Earlier in the morning there were weak economic data from Australia that caused AUD to weaken further.

If we also look at the Trend/Wave/Extreme indicator focusing on the commodity trading pairs (AUD,CAD,NZD) we can find some interesting conclusions.

twx 20141001 It can be seen that both the NZD and the AUD are both down-trending against USD,EUR and GBP .  NZD however is in overbought correction mode which allows it to be sold at a better price. As NZD and AUD are correlated the big drop observed in AUD today is likely to be followed by NZD.

EURNZD (H4) BUY

The Trend/Wave/Extreme mini indicator is showing

eurnzd  20141001

  • The Trend Bar is Green filled pointing Up Trend
  •  Wave and Extreme bars are Red filled pointing a down correction that may have finished
  • A solid UpTrend Line
  • Correction so far has been 300 pips

GBPNZD (H4) BUY

The Trend/Wave/Extreme mini indicator is showing gbpnzd 20141001

  • The Trend Bar is Green filled pointing Up Trend
  •  Wave and Extreme bars are Red filled pointing a down correction that may have finished
  • A solid UpTrend Line
  • Correction so far has been 300 pips

NZDUSD (H4) SELL

The Trend/Wave/Extreme mini indicator is showing

nzdusd 20141001

  • The Trend Bar is Red filled pointing Down Trend
  •  Wave and Extreme Bars are Green filled pointing an Up correction that may have finished
  • A solid Down Trend Line
  • Correction so far has been 100 pips

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme  . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.