Tentative: RBNZ decision setup. Part 1/2
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 first one, is alligned to a STAY of the rates --> Long NZDUSD on the break of the lower mid line of the pitchfork formation, current resistance of ~ 0.7. This decision comes from taking advantage of the current short term weakness of the USD. Possible targets could be the midline of the pitchfork or up to the 1.618 fibo trend calibrated fibo at ~ 0.72
How can we trade this exciting piece of news?
Two setups come to mind. This, the first one, is alligned to a STAY of the rates --> Long NZDUSD on the break of the lower mid line of the pitchfork formation, current resistance of ~ 0.7. This decision comes from taking advantage of the current short term weakness of the USD. Possible targets could be the midline of the pitchfork or up to the 1.618 fibo trend calibrated fibo at ~ 0.72
Hold on rates