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:
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.
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!
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