Front run a possible NZD rate cut

1 HR Charts

With a possible rate cut forecast for NZD there is an interesting setup here. The N/U is up in a resistance zone as shown and risk is clearly defined. The A/N is in a clear up trend so NZD is the weaker of the two. So, if the USD rallies today then the N/U should fall nicely and could possibly allow a trade to be up 50-75 pips 'Before' the rate decision tomorrow and if they do cut rates the trade can be a 'Very' nice one. Another trade could be to buy the A/N off support at a later time with the same thought of front running. 'If/when' either trade is up 50-75 pips before the decision move stops to break even to eliminate risk would be a safe plan.

15 Min Chart

This could be the plan from here to get into this trade as 15 Min stoch cycles 'up' look to trade into a 'short' on N/U. Time this trade by using 1 min Fractals is one method. The Daily Pivots have traded M2-M4 today so look for profit taking as well up at this level. If it rallies much past PP zones and up to/past 78.6 fib its not as attractive at that point for a sell. Just to mention, the E/U has an identical set up as this to trade.

2 thoughts on “NZD/USD Idea (+ Update)”

  1. adamp says:

    Nice setup James, I’m thinking the same thing on NZDUSD. There is a down channel on the 4hr chart, it meets the WPP/MCPP which is where we are now. Just no surprises from the RBNZ tomorrow. Cheers

    1. James Mauro says:

      Thanks Adam, so far central pivots holding. I concur, no surprises. Reload setup going into Asia. Lets see how it plays

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