I'm looking to short NZD/USD as a swing trade, and here's why.
The U.S. and China have agreed to ease some tariffs. That’s reducing global trade tensions, which is a positive for the U.S. economy—and could strengthen the dollar as investors shift toward safer assets.
At the same time, retail traders are heavily long NZD/USD. When the crowd is all on one side, the market often moves the other way. That’s a red flag.
Technically, NZD/USD is struggling to hold recent highs and starting to roll over. If we break key support and form a lower high, that’s my confirmation to enter short.
So I’ve got crowded sentiment, a weakening chart, and improving fundamentals for the dollar. It’s a clean swing short setup, and I’ll be waiting for confirmation with proper risk management in place.
The U.S. and China have agreed to ease some tariffs. That’s reducing global trade tensions, which is a positive for the U.S. economy—and could strengthen the dollar as investors shift toward safer assets.
At the same time, retail traders are heavily long NZD/USD. When the crowd is all on one side, the market often moves the other way. That’s a red flag.
Technically, NZD/USD is struggling to hold recent highs and starting to roll over. If we break key support and form a lower high, that’s my confirmation to enter short.
So I’ve got crowded sentiment, a weakening chart, and improving fundamentals for the dollar. It’s a clean swing short setup, and I’ll be waiting for confirmation with proper risk management in place.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.