Tentative: RBNZ decision setup. Part 2/2
The RBNZ decision is coming up tonight at 22 UK time. While the expected outcome, on paper, is for a stay of the current rate, economists seem to speculate a probability of ~ 20 % of a rate cut I think, which is high but not so much to discourage a stay setup.
How can we trade this exciting piece of news?
Two setups come to mind. This, the second one, is alligned with a CUT of the rates from the RBNZ --> Long AUDNZD.
The choise of pairs comes from a tactical advantage given by the current price action indicating a rebound from lower long term channel support line at ~ 1.06 which provides a decent margin for stop. Furthermore, the recent decision of the BoA to keep rates at current value should enhance the divergence between the two monetary standings, in case of an RBNZ cut.
How can we trade this exciting piece of news?
Two setups come to mind. This, the second one, is alligned with a CUT of the rates from the RBNZ --> Long AUDNZD.
The choise of pairs comes from a tactical advantage given by the current price action indicating a rebound from lower long term channel support line at ~ 1.06 which provides a decent margin for stop. Furthermore, the recent decision of the BoA to keep rates at current value should enhance the divergence between the two monetary standings, in case of an RBNZ cut.
Comment:
We had a hold of the rates, therefore this setup didn't trigger. The other one, (part 1/2 long nzdusd) did.