Faraday analyst Thomas Light explains why he has spotted an opportunity to short NZDUSD: "Last week’s rally in the kiwi has taken prices back towards some very interesting levels. 

Let's not forget the fundamental backdrop here which is one of diverging central bank policies

Only a month ago, the Reserve Bank of New Zealand stated that it had intervened to weaken its currency in order to boost export demand. Contrast this with the US Federal Reserve which is coming under increasing pressure to raise rates from all-time lows."

Using the daily chart Thomas talks us through the trade position he's taking. Explaining that a long-term downtrend and an ascending retracement have been formed with the highest close for a month being reached.      

Thomas suggests two strategies: "The first approach involves shorting a move up into the kill zone. The second more conservative option is to wait for the market to break below the channel and then short at the first mini retracement. In both cases our profit targets will be the recent lows of 0.77."