Sell below 0.7223. Stop loss at 0.7257. Take profit at 0.7168.
Reason for the trading strategy (technically):
Price dropped perfectly from our selling area to our profit target for the sixth time in a row. We now look to sell on strength below 0.7154 resistance (Fibonacci retracement, ascending resistance pullback) for a further drop to 0.7046.
RSI (34) has also made a bearish exit of a long term ascending support-turned-resistance line. This shows a change in momentum from bullish to bearish.
Reason for the trading strategy (fundamentally):
The major news item today moving USD is the U.S. Consumer Price Index (CPI) which assesses changes in the cost of living by measuring changes consumer pay for a set of items and is the headline figure for inflation. Inflation is generally bad news for the economy, causing instability, uncertainty and hardship. If there is high inflation, the Fed may increase interest rates which would cause the USD to rise. We are expecting a higher CPI reading of 1.7% today meaning a stronger USD which goes in line with our bearish NZDUSD view.