Switching Shorts From AUD/USD to NZD/USD
Skerdian Meta • 1 min read
AUD/USD has been bearish for the last two months. We have issued many sell forex signals in this pair during this time, the latest one being today. Thankfully, almost all of them closed in profit.
But now, I think it´s time to switch trains. We have to leave the AUD/USD southbound train and jump onto the NZD/USD train.
AUD/USD has been in a steep downtrend, but over the last couple of weeks, the downtrend has slowed somewhat, while the NZD/USD downtrend has accelerated.
In fact, that switching point happened on Wednesday evening when the statement from the RBNZ (Royal Bank of New Zealand) was published and it wasn´t as hawkish as the forex market was expecting. Truthfully, it was sort of neutral.
The markets were expecting a hawkish statement since the global economic conditions have picked up recently. The statement wasn't what was expected and that was all the markets needed to short the hell out of NZD.
Now, the downtrend in NZD/USD is a lot steeper than the downtrend in AUD/USD. So, we´re shifting our forex signals to NZD/USD. We opened such a signal yesterday in this forex pair, right above the resistance, and it is only a few pips away from hitting TP now.
Previous support now turns into resistance
Just so we're clear, we´re not leaving AUD/USD totally. If we spot a good opportunity we will take our chances, but we´ll be more careful than before with this pair.