Hedge dollar shorts with NZD/USD short

NZDUSD D1 (03-18-2016 1724)

 

Dovish Fed has triggered a wave of selling in the USD that is likely to stay intact for at least next few days.

Traders who have dollar short positions via EUR/USD, GBP/USD etc.. may consider hedging with NZD/USD short.

The bird failed to sustain abv rising symmetrical triangle formation/rising channel (call it whatever you want).

A bearish closing today would make the channel ceiling a strong resistance, above which upside appears capped around 0.6883-6897. Unless they are taken out, bearish prospects remain intact

Furthermore, USD weakness puts more pressure on RBNZ to ease further and hence, short NZD/USD for immediate target of 0.67 appears a good trade, especially if we are dollar short via other pairs.

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