On hold RBNZ as suspected for not only is the New Zealand economic system stable since the August OCR cut but NZD interest rates failed the 5 Points in 5 day rule posted at fxstreet at the beginning of last year. But again, the monetary aspect is ancillary to the actual NZD price as we knew our trade entries and targets at week’s beginning. And for most, its the main part to count and our trades as usual worked perfectly to entry and target.
Posted at week’s beginning was 4 NZD pairs and GBP/NZD and EUR/NZD. The telling characteristic was the Dead stop for NZD/USD at weekly point at 0.6414. Explains why no or little follow through for the remainder NZD pairs against their respective MA break Points.
To wide wide range NZD/JPY Vs a 51 pip move to our target and 34 pip move above our weekly point for an 85 pip gain. If for example, NZD/JPY Correlates to USD/JPY and not to NZD/USD as its proper position then NZD/JPY transforms to a correlation to a USD currency pair and as a USD currency pair, it won’t trade to its fullest potential. This correlation phenomenon applies to all JPY cross pairs.
NZD/JPY actual weekly volatility is located at 93 pips and we captured 85 of the 93. Viewed from weekly volatility numbers, its customary for us to capture at least 50% of all traded pips on now 18 weekly currency pairs.
Weekly currency and all market prices contain gray area and gry ares are price locations not to trade. NZD/USD Target 0.6398 Vs it weekly point at 0.6414. The gray area from 0.6398 to 0.6414 represents gray area. Price mist inform to next move as long above 0.6414 or short.
For 6 currency pairs and 9 trades, profit was +642 pips and earned quickly by trading the RBNZ announcement. Our entries however was based on weekly enter numbers and most exchange rate numbers were close to RBNZ beginning.
The Trades as Posted
NZD/USD. Long Entry 0.6315 and 0.6306 to target 0.6393. Actual 0.6325 to 0.6393 for +78 Pips. Long above 0.6414 never materialized as NZD dead stopped at 0.6415.
NZD/JPY. Long Entry 68.85 and 68.62 to target 69.43. Actual 68.92 to 69.43 for +51 pips. Long 69.56 to target 70.95. Actual 69.56 to 69.90 for +34 pips. Target 70.95 remains valid.
NZD/CAD. Long Entry 0.8346 and 0.8319 to target 0.8439. Actual 0.8349 to 0.8439 for +90 Pips. Long 0.8469 to target 0.8530. Actual 0.8469 to 0.6493 for +24 pips. Target 0.8530 remains valid.
NZD/CHF. Long Entry 0.6303 and 0.6293 to target 0.6342. Actual 0.6281 to 0.6342 for +61 Pips. Long 0.6364 to target 0.6481 dead stopped at 0.6367. Not trade however the trade remains valid.
EUR/NZD. Short entry 1.7445 and 1.7478 to target 1.7340. Actual 1.6435 to 1.7340 for +95 Pips. Short 1.7313 to target 1.7247. Actual 1.7313 to 1.7247 however EUR/NZD traded to 1.7147. Credit to trade instructions only +66 pips.
GBP/NZD. Short entry 2.0212 and 2.0258 to target 2.0074. Actual 2.0323 to 2.0009. Trade instructions +185 pips.