AUDNZD – BUY – Wednesday 18th December (Closed)
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.
