Forex Review: GBP/AUD and NZD/USD

Nope, no new trades for me this week! Thanks to recent economic developments, I’ve decided against setting entry orders on GBP/AUD and NZD/USD. Check out my original trade ideas:

Forex Trade Idea: Long GBP/AUD
Forex Trade Idea: NZD/USD Area of Interest

GBP/AUD

GBP/AUD 4-hour Forex Chart

GBP/AUD 4-hour Forex Chart

I thought of buying this pair around the mid-channel area of interest, which lines up with the 1.8250 minor psychological support. However, the BOE minutes turned out to be less hawkish than expected, as policymakers didn’t reiterate their plans to hike interest rates before the end of the year. Meanwhile, the Aussie recently enjoyed strong support from CPI figures coming in line with expectations, easing concerns that the RBA might cut rates.

NZD/USD

NZD/USD 4-hour Forex Chart

NZD/USD 4-hour Forex Chart

As for NZD/USD, I had been watching the area of interest at the .8700 mark and waiting for reversal candlesticks that might signal a return of Kiwi bulls. However, the RBNZ suggested that they would pause from its rate hike streak and assess the impact on the economy for now. It doesn’t help that geopolitical risks continue to weigh on risk sentiment and higher-yielding currencies.

Do you think it’s time for me to switch my biases on these currencies or are these just short-term pullbacks allowing me to get in at better prices? Don’t be shy to share your thoughts!

 

Happy time

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  • ForExchange

    Hi Happypip,

    I am very skeptical with NZD and do not trade it for a while. I lost yesterday quite a lot with it. Rate hike and still such a bearish reaction. I thought it was obvious that they make a pause in rate hiking as it was also forecasted. Well the market did not think about it. I would still go bullish on NZD if the Governor wouldnt say that it is an unsustainable high level at the moment. So I better watch out with it.

    Good luck

    • http://www.babypips.com/blogs/playing-with-comdolls/ Happy Pip

      Thanks for the feedback. I guess many traders closed their long positions after the RBNZ said that they won’t be hiking rates again for a while. I’m also cautious with it for now, especially since Wheeler has started to jawbone again. Maybe time for a large correction?

  • http://www.babypips.com/blogs/playing-with-comdolls/ Happy Pip

    Yeah, after that cautious RBNZ statement, I’m really thinking of switching to a bearish bias. Thanks for checking out my blog and for sharing your thoughts!

  • Clarence

    I’m currently bearish on NZD/USD since the risk aversion theme is still on and since most of the dollar pairs these last few weeks are on a bearish note including GBP and EUR..what do you guys think?

    • http://www.babypips.com/blogs/playing-with-comdolls/ Happy Pip

      Good call! Where did you short? Looks like it’s working out really well for you now.