Setup on $NZDUSD
Tuesday, May 12, 2015
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More talk of cuts to the Official Cash Rate (OCR) this year have triggered a hefty weakening of the New Zealand dollar (NZD) this week.
The movements follow ANZ economists this week picking that the Reserve Bank will be forced to drop the OCR, currently at 3.5%, as soon as next month, and follow up with a further cut in July.
ANZ mentioned that : "We expect the RBNZ to cut by 25bps in June and follow up with another cut in July. Monetary policy is more than merely monitoring demand and wage and price setting outcomes."
As you can see on the chart below Kiwi Dollar Swamped Under Wave of Selling ,i expect more selling below 0.7450 targeting around 0.7175/50 ,, Risk /Reward on this trade is about 1:2.5 ,Not bad with stop on a weekly close above 0.7560.
My recommendation : Re-Sell around 0.7400/0.7440 targets : @0.7280 , @0.7220 & @0.7175
stop on a weekly close above 0.7560
Ayman Khlifat on Twitter : @Aymankkhlifat
Email : Aymanfxsignals@yahoo.com
More talk of cuts to the Official Cash Rate (OCR) this year have triggered a hefty weakening of the New Zealand dollar (NZD) this week.
The movements follow ANZ economists this week picking that the Reserve Bank will be forced to drop the OCR, currently at 3.5%, as soon as next month, and follow up with a further cut in July.
ANZ mentioned that : "We expect the RBNZ to cut by 25bps in June and follow up with another cut in July. Monetary policy is more than merely monitoring demand and wage and price setting outcomes."
As you can see on the chart below Kiwi Dollar Swamped Under Wave of Selling ,i expect more selling below 0.7450 targeting around 0.7175/50 ,, Risk /Reward on this trade is about 1:2.5 ,Not bad with stop on a weekly close above 0.7560.
My recommendation : Re-Sell around 0.7400/0.7440 targets : @0.7280 , @0.7220 & @0.7175
stop on a weekly close above 0.7560
Ayman Khlifat on Twitter : @Aymankkhlifat
Email : Aymanfxsignals@yahoo.com
