Commodity currencies is another misguided term without foundations. Australia and Iron Ore is vital to exports for the past 200 years yet have we seen Iron Ore drops and AUD/USD rise. Popular is association of WTI crude to USD/CAD. Canada Oil is WCS and a different crude to WTI. Ever seen CAD and Crude prices de couple. Of course. Why. Look outside the currency price or currency markets then trade answers won’t be found. WTI has Correlation associations to USD/CAD but correlations revolve in levels which changes the price associations between two financial instruments. Correlations may change daily, weekly, monthly. Last check, CAD and WTI actually shared a loose correlational association which means, its a failed association and unreliable to trade. EUR/USD and DXY share 98% Correlations. How long will this association last. Not very long. Then Correlations all around will see abrupt changes upon breakouts. Not popular but again the currency price is the least understood price in all of markets.
NZD is severely overdone and is set to go on a long journey southbound. Sell rallies will last long into the future. Big points are located at 0.6813, 0.6804, 0.6801, 0.6795. Tops are found at 0.6893, 0.6863.
NXD/USD. Bottom. 0.6761. Range point above 0.6837, 0.6880, 0.6899. Below 0.6753, 0.6692, 0.6632. Target 0.6823, Watch 0.6853 on break of 0.6823. Target at 0.6823, sell target 0.6809. Target at range point 0.6837, sell to 0.6819.
NZD/USD shorts on break 0.6795, target 0.6778, 0.6761 bottom. Then 0.6753 range point.
Brian Twomey, Inside the Currency Market, btwomey.com