Buy NZDCAD on a Fibonacci Retracement
Updated
I have gone LONG NZDCAD. On my 4H chart there was a impulse wave breaking the down trend (in yellow). This retraced overnight to the 0.618 Fibonacci level where I entered at 0.8348 SL 0.8290. My target is 0.8465.
My rational for the trade is that on that CAD side oil prices remain under pressure, on expectations that demand will be weak and Israel will avoid a strike on Iranian oil facilities. Also the market believes Canadian may start cutting rates agressively.
On the NZD side although CPI came in as expected later in the New Zealand day (New Zealand) the RBNZ published its own inflation data and this came model came in much higher, at 3.4% y/y. Also I believe the market in generally bullish which favours NZD and AUD.
Let's see what pans out!
My rational for the trade is that on that CAD side oil prices remain under pressure, on expectations that demand will be weak and Israel will avoid a strike on Iranian oil facilities. Also the market believes Canadian may start cutting rates agressively.
On the NZD side although CPI came in as expected later in the New Zealand day (New Zealand) the RBNZ published its own inflation data and this came model came in much higher, at 3.4% y/y. Also I believe the market in generally bullish which favours NZD and AUD.
Let's see what pans out!
Trade closed manually
This pair has not moved much. it wondered up to 0.8433 to and back down to 0.8155 now and it slowly grinding up. As it is Friday afternoon and the weekend is approaching I will close the trade 0.8372 for a small profit and review Sunday night or Monday morning. I am not a fan of holding risk-on trades over the weekend. 
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