Trade view /
21 July 2016 at 13:08 GMT
The Reserve Bank of New Zealand delivered a dovish economic update today which set the stage for an August rate cut and justified the drop in NZDCAD from 0.9211 to 91.03 on Monday. Unfortunately there hasn't been much follow-through selling, and Monday's low is only slightly above the post-economic statement low of 0.9083.
The original Trade Idea
was updated yesterday and recommended cancelling the second sell order while lowering the stop loss to 0.9170.
This trade wasn't expected to last longer than Friday, and the prospect of US dollar buying ahead of the weekend due to next week's FOMC meeting makes it prudent to close the trade now.
Buy NZDCAD at the market (currently 0.9115) and book a .0080 point gain on this trade.
Entry: Sell half position of NZDCAD at market (0.9195), balance at 0.9245.
Time horizon: five days.
— Edited by D. Deacon
Non-independent investment research disclaimer applies. Read more