Long AUDNZD Idea- Weekly Inverted H&S+Renewed Policy Divergence
The weekly chart shows a very interesting inverted head & shoulders pattern following a significant AUD decline against the NZD after breaking, but failing to hold below the December 2005 lows. With the renewed dovish tone of the RBNZ after disappointing dairy prices, and even more disappointing consumer price figures, this looks to be a good opportunity for medium term longs on the AUDNZD. The RBA continues to remain on hold with the 30 Day Interbank Cash Rate Futures suggesting a 94% probability of no change, while expectations for further cuts by the RBNZ have increased from 8% to 40% since the latest statement, according the current OIS market. This pair also limits the exposure to falling commodities and risk tone considering both the Aussie and Kiwi are higher yielding commodity currencies.
Trader psychology is by far the most important aspect of your trading success. Without the right mindset and ability to execute everything you learn and know, none of it even matters.
Chris Mathis
Chris Mathis
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.