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- The rate decision is expected to show a further cut to the RBNZ rate bringing it down to 1.75% - however the NZD has sold off considerably over the past months and WE COULD SEE A RALLY REGARDLESS OF THE RATE DECISION TONIGHT. I think the RBNZ will be more hawkish in their statement than expected and any initial move down will be a knee jerk reaction followed by a break through of the neckline on the forming head and shoulders
pattern. It is better to take it from this position than from the next shoulder as it will be very hard to enter this trade psychologically if they do cut rates...WAIT FOR THE DECISION TO PLAY OUT BEFORE ENTRY.