Let's Start with the Fundamentals:
The Fundamentals really favor the NZD over the AUD,
- GDP Growth: (AUD 0.5% / NZD: 2.0%) is higher in NEW Zealand which is better for the NZD.
- Inflation: (AUD: 7.8% / NZD: 3.6%) is hotter in Australia than New Zealand.
- Unemployment: (AUD: 3.5% / NZD: 3.4%) is lower in New Zealand which is better.
- Interest Rates: (AUD: 3.35% / NZD: 4.25%) is higher in New Zealand which is good for the NZD.
Sentiment:
-COT Report: shows /75.2%/ of the institutional open contracts are long on the NZD, while /34.7%/ are long on the AUD.
This favors the NZD over the AUD.
- Retail Sentiment: 54% of retail traders are short. which is not the best setup here.
Technical:
The Price is is in down trend, made a retracement to the /0.618/ level which is a resistance level as well. This gives a good risk to reward ratio.
The Fundamentals really favor the NZD over the AUD,
- GDP Growth: (AUD 0.5% / NZD: 2.0%) is higher in NEW Zealand which is better for the NZD.
- Inflation: (AUD: 7.8% / NZD: 3.6%) is hotter in Australia than New Zealand.
- Unemployment: (AUD: 3.5% / NZD: 3.4%) is lower in New Zealand which is better.
- Interest Rates: (AUD: 3.35% / NZD: 4.25%) is higher in New Zealand which is good for the NZD.
Sentiment:
-COT Report: shows /75.2%/ of the institutional open contracts are long on the NZD, while /34.7%/ are long on the AUD.
This favors the NZD over the AUD.
- Retail Sentiment: 54% of retail traders are short. which is not the best setup here.
Technical:
The Price is is in down trend, made a retracement to the /0.618/ level which is a resistance level as well. This gives a good risk to reward ratio.
Note
Now the retail sentiment is /78%/ long. It is always better to trade against the retail crowd because more than /90%/ of retail traders lose money, they are most of the time in the wrong side of a move.Trade closed: target reached
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.
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.