Yesterday’s price action in the USD was bearish and saw the Greenback give up some of its Monday gains and currently finds itself at a critical inflection point, see 4hr Chart below. As we have posted previously, we believe that the weight of technical evidence favours the commencement of a corrective phase in the USD lasting a few months. Keep an eye on it today. Based on that, we see a nice technical setup in the NZDUSD were we have added to our short position. What we like about the Kiwi setup is that our risk is clearly defined and feel comfortable assuming that risk.
FXCM USD Index – 4hr Chart: At key levels! Watch it closely!
NZDUSD – 4hr Chart: Adding to our short with risk levels clearly defined