WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: NZD/USD – Stabilizes Even Though US 10-Year Yields Surge to 3.0%

Posted by Edward Moya on Dec 27, 2013 10:12:00 AM


On December 10th, I identified a potential Bearish Gartley pattern that was respected and kept the bearish channel intact.  The initial price objective was reached and further commodity currency pressure has so far supported a move lower. 

With thin markets firmly in place, the next key release for NZD/USD will be Chinese Manufacturing PMI on Tuesday, New Year’s Eve.  A positive beat may occur and with that, we may a slight rally for the kiwi.  The key storyline for this thin trading week is that US 10-year yield has hit 3.0% and the U.S. dollar has yet to display a significant move higher against the commodity currencies. 

Price on the daily chart for NZD/USD is displaying a potential double bottom at .8150 in the short-term (highlighted by two green arrows).  So far, we have seen short covering triggering a climb towards the Christmas gap at .8180. It is at this level that some selling interest may prevent a move above .8200.  Eventually we may see minimum momentum drive a move towards the 50-day Simple Moving Average at .8265 and possibly breaking the downward channel. 

The trade: Buy NZDUSD at .8215 with a stop loss at .8190 and a take profit at .8265.  The Risk/Reward Ratio is 1:2.

Edward J. Moya

Technical Strategist

WorldWideMarkets Online Trading


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!