AUD/NZD
Well, I am licking my wounds after my CHF/JPY trade was stopped out yesterday. See here for the post yesterday. Price retraced to my technical stop and then went in the 'correct' direction after Trump cancelled the meeting with N.Korea too late in the day. Doh, annoying. Come on Donald, you should have cancelled the meeting earlier ;-)
Ok, today is a new day and I am looking for a retracement on the AUD/NZD chart to get long.I first posted this set up on the 14th of May. The outlook for the pair still remains the same. The NZD is much more neutral in its 'holding' stance. Governor Orr , the new RBNZ, Governor , stated that the direction could be a 'hike' or a 'cut' and that a 'cut' was a valid option. Justin reported in it here at the time.
The RBA , by contrast, is in a more neutral holding stance with the most likely change to be a hike. So, a AUD/NZD long looks good. I favour a pull back here, on the 4 hour chart, to the 38.2% to 50% fib level, which also has the 100 MA in that region. The 1.0800 level would be ideal, and I have a rate alert set for 1.0832 and will consider longs from there and below. If you need a handy, free alert service that sends e-mails to your inbox, just go here.
Risk to the trade: a change in either central bank's outlook.
I will leave you on this note with Men at Work down under as I hope you have a good weekend.
