Forex

Forex $1 MM Challenge – Missed My Trade Again On GBP/NZD

The Reserve Bank of New Zealand has already cut interests rate three times this year with the most recent cut being in August.  Back in August the Bank of New Zealand cut rates by 50 basis points.  The drastic cut shocked the Markets because the Markets were only a 25 basis point reduction.  At that time, Reserve Bank Governor Adrian Orr hinted at further easing by any means necessary in order to hit their inflation rate targets.

Fast forward to this past Thurs and the Bank of New Zealand shocked the Markets again.  But this time New Zealand's central bank on Wednesday held the official cash rate (OCR) at a record-low 1.0%.

NOTE: This was bullish for the New Zealand Kiwi

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said on Thursday that it was unlikely the central bank would need to use unconventional monetary policy tools, although it would be negligent not to be prepared for such a scenario.

"Our current view is that we are unlikely to need 'unconventional' monetary policy tools. But we would be remiss not to be prepared," Orr said in a speech in New Zealand that was released by the bank.

The New Zealand Dollar jumped after the comments, rising 0.3% to $0.6292.

Source

Monthly Chart (Curve Time Frame) - monthly supply is at 2.20000 and monthly demand is at 1.70000.

Weekly Chart (Trend Time Frame) – price also broke the weekly up trendline.

Daily Chart (Entry Time Frame) – the chart suggested to short price at the daily supply at 2.00500, but the trade set-up happened without me for a 2nd time.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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