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Correct me if I am wrong , but I could not digest the NZDUSD trade plan posted on the Forex Signals Section today.
https://www.forexpeacearmy.com/fore...ignals-summary-wednesday-march-12-2014-a.html
Now here's the confusion I have about the Trade Plan.
The existing Lending Rate is 2.5%
The new proposed rate is 2.75%, any Lending rate increase itself should push the market up.
Now the Spike trade plan has a 3% trigger on the up side and 2.5% trigger on the down side.
Last month Shorts opened up on NZDUSD when the Lending rate was not hiked and it stayed at 2.5%.
What is the guarantee the same will follow if the Lending rate is maintained ?
Better still aren't we looking at any move at all if the Interest rate is hiked to 2.75% ?? Considering the Rate hike has come after 3 years NZDUSD and NZDJPY should move up.
I can see that the Pair NZDUSD is almost overbought as of now and a huge move to the upside is unlikely but a 50 to 100 pip total spike up is quite possible if the Release comes at 2.75%. Next resistance is between 0.8659 to 0.8675 which is also at Monthly Resistance 2 Pivot Level.
Please Correct me If i am wrong.
What say Guys ?
https://www.forexpeacearmy.com/fore...ignals-summary-wednesday-march-12-2014-a.html
Now here's the confusion I have about the Trade Plan.
The existing Lending Rate is 2.5%
The new proposed rate is 2.75%, any Lending rate increase itself should push the market up.
Now the Spike trade plan has a 3% trigger on the up side and 2.5% trigger on the down side.
Last month Shorts opened up on NZDUSD when the Lending rate was not hiked and it stayed at 2.5%.
What is the guarantee the same will follow if the Lending rate is maintained ?
Better still aren't we looking at any move at all if the Interest rate is hiked to 2.75% ?? Considering the Rate hike has come after 3 years NZDUSD and NZDJPY should move up.
I can see that the Pair NZDUSD is almost overbought as of now and a huge move to the upside is unlikely but a 50 to 100 pip total spike up is quite possible if the Release comes at 2.75%. Next resistance is between 0.8659 to 0.8675 which is also at Monthly Resistance 2 Pivot Level.
Please Correct me If i am wrong.
What say Guys ?