The New Zealand dollar has been up and down over the last few weeks, and one strategist sees a selling opportunity in the pattern.
The kiwi has been trading in a range against the US dollar in a pattern thatTodd Gordon, director of research and trading for Aspen Trading Group, describes as broken uptrend support. Gordon told CNBC's Melissa Leethat when currencies move in this type of pattern, what had been support becomes resistance, and he sees a "cluster of resistance" around the 76.50 to 76.80 level.
While the New Zealand dollar has been moving higher in the last few days along with other so-called commodity currencies, Gordon believes it is "a little overdone," based on technicals. He recommends going short the kiwi against the U.S. dollar with a stop around 77.40 and a target of 74.50.
Traders, he said, should "short that weak laggard commodity currency the kiwi."
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