With the weekend right around the corner, I thought I’d do quick updates and adjustments on my latest ideas in AUD/USD, GBP/NZD and NZD/CAD!
Weak China and commodities sentiment had this pair breaking to new lows and I definitely wanted to get in on the momentum. But I was looking for a bounce first since I thought the sell off might have been overdone. Unfortunately, the relief rally never came so I decided to cancel my short order at .7450 and throw this pair back onto the watchlist for next week. No trade.
I got bullish on GBP/NZD ahead of a couple of major catalysts, and it looks like my directional call was right. Unfortunately, once again the market didn’t quite make it to my buy orders at 1.8600 before we saw a huge spike upward during the latest RBNZ monetary policy announcement. It was likely the downplay of the positive inflation read and the downgrade of future growth that had Kiwi bears out in full force, pushing GBP/NZD up over 200 pips within minutes.
With the market far from my entry and after today’s negative U.K. data and Bank of England monetary policy announcement, I’ve decided to close my buy orders at 1.8600. No trade.
NZD/CAD took a hit to the downside after the RBNZ meeting, negating the strong attempts by the bulls to bread above that stubborn .9500 handle. Fortunately, I caught a bit of luck as the pair didn’t quite make it to my stop out orders before we saw the bulls come in and defend that minor support area.
Overall, I’m still bullish on this pair as this week’s RBNZ meeting didn’t change my bias on the Kiwi vs. the Loonie. The data hasn’t been great for Canada and I think with more economic data coming out for both countries in the next two weeks, as well as the latest statement from the Bank of Canada, more arguments will arise in favor of the bulls. So, I’ll hold long for now and see what the data gives me next week.
Until then, stay tuned, good luck and good trading!
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