One currency pair that I find particularly interesting is Aud-Nzd. I state that all my analysis focuses on the Covid-19. Above, you can see the chart with the most significant levels drawn.
At the Reserve Bank of New Zealand's last meeting on 18 August, the Governor stated that the "decision was made in the context of the Government's imposition of Level 4 COVID restrictions on activity across New Zealand", i.e. the introduction of lockdown in New Zealand. He added that "Today's re-introduction of Level 4 restrictions to activity across New Zealand is a stark example of how unpredictable and disruptive the virus is proving to be."
Ultimately, "The Committee noted the considerable uncertainty that exists regarding the longer-run impacts of COVID-19, particularly with the emergence of new variants. Globally, periods of health-related mobility restriction are likely to continue for some time, creating ongoing short-term economic disruptions, supply cost pressures, and lower productive capacity."
Australia had reintroduced the lockdown about a month earlier, with Aud-Nzd dropping nearly 400 pips since then. Now that lockdown has been reintroduced in New Zealand, it is very likely that we will see the currency pair settle at much higher levels than it is now.
As always I leave the stop-loss (and position size) to you and your money management, for the target, I will close most of the position at 1.06900, with the next and final target in the 1.07800/1.08100 area.
At the Reserve Bank of New Zealand's last meeting on 18 August, the Governor stated that the "decision was made in the context of the Government's imposition of Level 4 COVID restrictions on activity across New Zealand", i.e. the introduction of lockdown in New Zealand. He added that "Today's re-introduction of Level 4 restrictions to activity across New Zealand is a stark example of how unpredictable and disruptive the virus is proving to be."
Ultimately, "The Committee noted the considerable uncertainty that exists regarding the longer-run impacts of COVID-19, particularly with the emergence of new variants. Globally, periods of health-related mobility restriction are likely to continue for some time, creating ongoing short-term economic disruptions, supply cost pressures, and lower productive capacity."
Australia had reintroduced the lockdown about a month earlier, with Aud-Nzd dropping nearly 400 pips since then. Now that lockdown has been reintroduced in New Zealand, it is very likely that we will see the currency pair settle at much higher levels than it is now.
As always I leave the stop-loss (and position size) to you and your money management, for the target, I will close most of the position at 1.06900, with the next and final target in the 1.07800/1.08100 area.