The Kiwi has been putting up a strong fight against its forex rivals, causing my second buy order to get triggered. Here’s how it’s looking so far.
I was watching a longer-term range breakout for this one, eyeing an entry past the .9550-.9600 area on a break higher. Price gave me an opportunity to enter on a quick pullback so I was able to hop in at .9600 while leaving another buy stop order in place at .9675.
This second entry order just got triggered on a rising wedge breakout after New Zealand reported yet another gain in dairy prices during its latest GDT auction. This could be enough to keep the Kiwi afloat until the RBNZ interest rate decision in the next Asian session, during which officials might opt to keep policy unchanged.
Meanwhile, the Loonie has slowly been sliding lower, dragged down by the lack of momentum in crude oil rallies. Not even speculations of an oil output freeze in the upcoming OPEC meeting in Algiers have been enough to make the commodity hold on to its gains lately, which suggests that there’s a lot of room for bearish pressure and disappointment.
Later on in the week, Canada has its CPI and retail sales figures up for release. Small gains are eyed for both inflation and consumer spending, but I’m thinking the Loonie could refrain from rallying too much ahead of the OPEC pow-wow. Still, I’ll be keeping an eye out for huge price swings during today’s FOMC announcement, as this might bring NZD/CAD back below the rising wedge formation. My stop is pretty far away at .9375 so I’m not too worried yet.
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups. I’ll keep y’all posted through my Twitter account if I’m making any adjustments.
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