RBNZ Rate Cut Outlook Might Send KIWI Lower VS YEN!
Have a look at the main chart for the NZDJPY weekly TF. The horizontal lines represent concrete support and resistance levels taken from the Monthly TF. The price has already pierced the 69.000 level and is possibly headed towards the next support that is present at the 63.000 level.
Furthermore, there is a neat descending channel on the weekly charts which adds further confluence towards the declining of the price.
the above snapshot shows the monthly TF of NZDJPY. As seen, the horizontal lines represent the nearby support and resistance levels and currently the 69.000 level was violated as the monthly candle closed below it convincingly. The next support lies at 63.000 level where is the price will likely be headed.
Fundamentally, The tradewar has affected kiwi to great extent and the RBNZ might cut the rates a further two times before 2020 to support the economy and slowdown. With the trade deal no where in sight, the safehaven demand for JPY will be high in such RISK OFF environment. Therefore such a strong YEN and a weak KIWI is a good combination to trade and take this PAIR SHORT.
At the moment the USD strength is unprecedented and i am evaluating on what pair to take SHORT as taking both would double the risk exposure. currently i am waiting for the NZD to retrace slightly as its deeply oversold after dropping so much in the last month. A slight retracement would enhance our Risk to reward ratio and widen our stop loss.
Once the price has retraced slightly i will post the trade details in a new post. i am not sure what would it be NZDJPY or NZDUSD.
Furthermore, there is a neat descending channel on the weekly charts which adds further confluence towards the declining of the price.
the above snapshot shows the monthly TF of NZDJPY. As seen, the horizontal lines represent the nearby support and resistance levels and currently the 69.000 level was violated as the monthly candle closed below it convincingly. The next support lies at 63.000 level where is the price will likely be headed.
Fundamentally, The tradewar has affected kiwi to great extent and the RBNZ might cut the rates a further two times before 2020 to support the economy and slowdown. With the trade deal no where in sight, the safehaven demand for JPY will be high in such RISK OFF environment. Therefore such a strong YEN and a weak KIWI is a good combination to trade and take this PAIR SHORT.
At the moment the USD strength is unprecedented and i am evaluating on what pair to take SHORT as taking both would double the risk exposure. currently i am waiting for the NZD to retrace slightly as its deeply oversold after dropping so much in the last month. A slight retracement would enhance our Risk to reward ratio and widen our stop loss.
Once the price has retraced slightly i will post the trade details in a new post. i am not sure what would it be NZDJPY or NZDUSD.
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