Both Australia and New Zealand have their future tied to one country and that is China. Godfather itself is in trouble and both has left to figure out their own salvation. Rate expectations keep on shifting for both but for last couple of years AUD/NZD pair has been providing excellent trend trading opportunity. Until the clear break of 1.1300, future is still muddied but looking at the free fall of NZD we would like to dare a long near 1.1200 expecting the test of 1.1500 in near future. Rationale is NZD and AUD both will keep falling but at different rate.
Update: Orders filled at 1.1205 and as per our strategy of never letting a profitable trade go away, booking partial profits whenever a pair is up at least 25 points from our entry first. Now we will observe and manage the trade. NZD is up because of PMs comments but lets see how it can sustain a survive. If the pair starts going south and can't hold 1.1280 then we will liquidate. Until that point, lets try to play the range and see if we can increase position on dips.
Update: Orders filled at 1.1205 and as per our strategy of never letting a profitable trade go away, booking partial profits whenever a pair is up at least 25 points from our entry first. Now we will observe and manage the trade. NZD is up because of PMs comments but lets see how it can sustain a survive. If the pair starts going south and can't hold 1.1280 then we will liquidate. Until that point, lets try to play the range and see if we can increase position on dips.