Good afternoon Forex Kings,

This week we are expecting weakness to flow into the NZD after a strong rally over the last two weeks.

Tomorrow NZ will release their GDP which has been in a decline for a long duration.

Whilst they are forecasting an up tick in GDP YoY, there GDP has been in a strong decline over the last 3 years.

This means a miss of the forecast could put weakness into the NZD.

 

The RBA on the other hand during their last interest rate statement suggested the Australian economy appears to be at a gentle turning point. With some strength pushing back into the AUD.

Trade Analysis

The AUDNZD has broken a negative trend line and has now re-tested the trend.

With the AUDNZD forming a higher low we could now see some upside on the pair, especially if the NZ misses its GDP forecast tomorrow.

Trade Set Up: BUY at market price, stop loss set at 1.0375, and take profit of 1.0530.

Stop loss is roughly 50 pips, and take profit is roughly 100.