Daily thread to exchange ideas and to share your thoughts
Month-end may be making things a bit tricky to navigate on the week with positioning plays tomorrow ahead of the long weekend not going to help either I reckon.
Major currencies are little changed so far today and after the spike yesterday, the kiwi may see a bit of a breather as it fails to clear the 0.7300-05 level against the dollar.
Unless that breaks, then only we the kiwi upside momentum may run further despite more positive fundamental undertones. That said, the RBNZ may be getting too ahead of themselves but we will see how that matches up in the months ahead.
The latest pullback in the loonie is one that may stretch further after its recent run of gains but I’m looking at further levels to scale in on more longs.
USD/CAD has some swing region resistance around 1.2140 for now with the 14 May high near 1.2200 also one to watch in terms of minor technical levels.
But I reckon any major pullback towards 1.2400 is one that sellers may really start to get back into the action. Elsewhere, some consolidation is seen in CAD/JPY so that may suggest that buyers are stepping aside for now to take a breather but in the long-term this is still one pair that I view quite favourably considering the current fundamental backdrop.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.