NZD/USD is still in an uptrend, with the rising trend line on the 1-hour time frame very much intact. Positive carry, thanks to the recent RBNZ interest rate hike, is keeping the pair afloat in the near term despite remarks from Finance Minister English regarding potential Kiwi depreciation.
Do take note though that stochastic is already down from the overbought zone, indicating that Kiwi bulls have run out of steam for now. The pair is consolidating above the rising trend line at the moment, waiting for a good catalyst for a bounce back to the previous highs.
Going long at market with a tight stop below the trend line and a target of previous highs around .8650 could yield a good return on risk for a short-term trade. Keep watch for any updates that could impact overall risk sentiment.
By Kate Curtis from Trader’s Way