Quote:
Originally Posted by trader123
Bearish on New Zealand dollar
The Reserve Bank of New Zealand cut interest rates for the first time in 5 years on 24 July 08. Reserve Bank of New Zealand reported that economic activity is likely to remain weak over the remainder of 2008.
Retail sales had fallen by the most in 4 years and consumer confidence hitting record lows, the New Zealand dollar has weakened to the lowest level in 6 months.
RBNZ Governor Bollard promising more rate cuts and the futures curve pricing such action, the New Zealand central bank has become the most aggressively dovish policy maker of the G10.
Further weakness is expected in NZD and for it to fall below 67 cents against the US dollar before end of September.
My proprietory trading system had signal SELL for NZDUSD.
Shorted 10,000 NZDUSD at 0.6962
Stop level at 0.7080
Target level at 0.6766
Chart: Forex & Binary Trading: Bearish on New Zealand dollar
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Yesterday I had shorted 10,000 NZDUSD at 0.6962, stop level at 0.7080, target level at 0.6766. Details here.
Today Australia central bank had cut its interest rate by a quarter point to 7%, causing AUDUSD to plunge down, and dragged NZDUSD down as well.
Currently NZDUSD is trading at 0.6842, profit is up 138 pips, US$137.60.
I believe US dollar strength will continue until Australia, New Zealand, Europe and UK are done with their interest rate cut, which will take another 6 months at least in my view.
Hence I think its not too difficult to make money in the forex market by shorting EURUSD, AUDUSD, NZDUSD and GBPUSD during this period.
My trading system is still signal SELL for NZDUSD. If you are interested to know my trading system, send an email to me at
metal.commodity@gmail.com.
Chart:
Forex & Binary Trading: NZDUSD trade profits 138 pips