Will the NZDUSD be able to hit the 0.70 lvl this Year?
This pair is one of my top focuses for this year and I almost let it slip by. After conducting my R/A this weekend I came to find out that the New Zealand economy might start over heating and the RBNZ is possibly going to be in a position to keep rising rates. The RBNZ is looking to raise rates to around 5.5% (at least that is what is projected). The data on New Zealand is:
Annual GDP: 6.4% and ranging
Unemployment: 3.4% and declining
Wage Growth: 4.3% and rising
Inflation Rate: 7.2% and rising
Industrial Production: 16.1% and rising
Manufacturing PMI: 50.8 and ranging
Retail Sales: -4% and declining
Housing Index: 186.2791 and declining
The technicals are also showing a double bottom and a descending wedge which adds to the probability that price might push higher.
Sentiment is also pushing more towards neutral for the USD as there are starting to be increased talks about the FED slowing down on interest rate hikes and being more dovish.
The Fundamentals, Technicals, and Sentiment are lining up which push my conviction lvl around the 60% lvl which got me to start planning on how to build a decent position on this pair. I have a position on this pair already at 10k (I am look to build to a standard lot for now).
This is what I am look at. If price stays above the 0.60 lvl, then it is highly likely that price will push higher. If price pushes below the 0.60 lvl by the end of March, then I don't think I am wrong, but I would think that I was too early. I would take my loss and retrograde for now and then come back in. My objective is to build a position up on the NZD before the 0.65 lvl (possibly around the 0.63 lvl, if lower, that would be ideal). If I am able to get into a full position before the 0.65 lvl, see price push higher to 0.68, and place a stop around the 0.65 lvl, I would be in a good spot to just hold onto the NZD and see if it pushes up higher.
If this doesn't work, like always, back to the drawing board to update my plan accordingly. But I think this is a high probability trade that will last for a while.
Like always, these are my thoughts and this is how I trade. Please come up with you own plans and ideas and ways to trade. This can be extremely risky and with the uncertainty in the markets, I could potentially blow up my account if I am not careful. Y'all have some great trading out there.
Annual GDP: 6.4% and ranging
Unemployment: 3.4% and declining
Wage Growth: 4.3% and rising
Inflation Rate: 7.2% and rising
Industrial Production: 16.1% and rising
Manufacturing PMI: 50.8 and ranging
Retail Sales: -4% and declining
Housing Index: 186.2791 and declining
The technicals are also showing a double bottom and a descending wedge which adds to the probability that price might push higher.
Sentiment is also pushing more towards neutral for the USD as there are starting to be increased talks about the FED slowing down on interest rate hikes and being more dovish.
The Fundamentals, Technicals, and Sentiment are lining up which push my conviction lvl around the 60% lvl which got me to start planning on how to build a decent position on this pair. I have a position on this pair already at 10k (I am look to build to a standard lot for now).
This is what I am look at. If price stays above the 0.60 lvl, then it is highly likely that price will push higher. If price pushes below the 0.60 lvl by the end of March, then I don't think I am wrong, but I would think that I was too early. I would take my loss and retrograde for now and then come back in. My objective is to build a position up on the NZD before the 0.65 lvl (possibly around the 0.63 lvl, if lower, that would be ideal). If I am able to get into a full position before the 0.65 lvl, see price push higher to 0.68, and place a stop around the 0.65 lvl, I would be in a good spot to just hold onto the NZD and see if it pushes up higher.
If this doesn't work, like always, back to the drawing board to update my plan accordingly. But I think this is a high probability trade that will last for a while.
Like always, these are my thoughts and this is how I trade. Please come up with you own plans and ideas and ways to trade. This can be extremely risky and with the uncertainty in the markets, I could potentially blow up my account if I am not careful. Y'all have some great trading out there.