First free online forex webinar
Last Friday 22 April 2016, I conducted a free webinar on Forex Trading for TerraSeeds. This is the first forex webinar we have done. One of the key points was trading the Forex Economic Calendar, specifically the RBNZ Official Cash Rate and Rate Statement (interest rate decision) coming this Thursday 28 April.
At 5am 28 April, Reserve Bank of New Zealand RBNZ will announce it’s interest rate decision. This interest rate decision is a major economic calendar event and is scheduled 8 times per year, the next time on 9 June 2016.
RBNZ interest rate meeting
As I mentioned during the forex webinar, RBNZ usually offers a very good pre/post-event trading opportunity. In fact we had some great winning pips trading the previous March 2016 RBNZ interest rate announcement.
Pairs to look at for Official Cash Rate decision
For those who didn’t attend this event (it was a closed door event), I mentioned that there are few NZD pairs which are very interesting. Particularly, AUDNZD has shown reversal signs and that price upon week close will likely move higher.
Of course, I also mentioned that there are also trade opportunities into GBPNZD, EURUSD, GBPUSD, AUDUSD, USDSGD, CADSGD and EURGBP which I will not mention them here.
From chart above, we see that AUDNZD is supported around 1.1040-1.1090. There is a 1.5 month consolidation pattern. For the first time, price has a week close above previous resistance around 1.1225.
The week close wasn’t drastically much above 1.1225, thus I expect some retracement to follow as there might be a group of bears who are trying to short price down.
After a bullish close, it is always prudent to wait for a retracement so you could buy low, instead of buying higher. I am waiting at 1.1150-60 for any signs of bullishness. These signs need to be accompanied by trigger so a trade could be explosive.
Update on 27 Apr 2016, 12.13pm
I wrote in the post above to watch for AUDNZD at 1.1150-60.
I am waiting at 1.1150-60 for any signs of bullishness. These signs need to be accompanied by trigger so a trade could be explosive.
This is the reason why Tflow® emphasizes on buy low sell high.
Waited at 1.1150-60. Price gushed through this level on weak AUD CPI data to trade now at 1.11.
There was no signs of bullishness into this level, thus Tflow® does not trigger any trade. Tflow® can predict future prices very well, but to confirm a trade, it requires a trigger. Often, trigger is the key to explosive trades.
Now price is inching towards support with fear of breaking this support as drawn.
AUDNZD mapping a 1234 in daily chart
If this is the case, we might see next support at 1.0950 and 1.0800. Now it’s how RBNZ and how NZD moves.
Once there is a signal to do something, I will update real time in our G+ group. Till then!
The following two tabs change content below.