Sunday, August 7, 2011

GBP/NZD 08/08/2011

This pair finished the week with a bearish pin bar on the daily that fits the full criteria. Off a support, long wick,body inside the previous daily candle and could be a potential bearish trend change. However, this week will be a wait and see approach with the US downgrade to AA from AAA which may cause major volatility as traders settle down on the news.




The British pound may be the beneficiary of the US down grade as most of the safe haven currencies i.e the Yen and the Swiss Franc are unsettled considering their government efforts to try and ease the strength of these two currencies.

Gold in my opinion may be the biggest beneficiary from this situation as investors run for safe haven status from the currencies. We might see a lot of unwinding of carry trades which will see a lot of repatriation of funds back to their respective countries.

However, it must be noted that in 1993 when Canada lost its ratings, it subsequently increased its stocks by up to 15% the following year so did its bond market increased in value too. This news may or may not affect the US economy. Lets sit back and watch it unfold.
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3 comments:

  1. Forex/commodity traderAugust 8, 2011 at 8:16 AM

    The bearish pin bar was not respected at all with the pair opening 1.9541 and retraced a little before moving much higher right now trading at 1.9800. Most pairs were hard hit by the news opening much much higher but most have retraced especially the Yen pairs that lost all their gains during the Asian session.

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  2. DankuSeptember 5, 2011 at 9:01 AM

    Guys, juts keep your trading simple. Last week was very good for correlation trading on GBPAUD & GBPNZD, EURAUD & EURNZD. Possible over 1000 pips within 3 days ... GBPAUD broke 1-2-3 Daily buy signal on 26-08 nicely lovely move down, EURNZD broke 1-2-3 Daily buy on 29-08 nicely lovely move down .. using correlation on EURNZD for GBPNZD and GBPAUD on EURAUD .. All the best this week .. patiently waiting for GBPCHF Daily Pinbar to break and correlate it with CADCHF ..Happy Trading ..

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  3. Forex/commodity traderSeptember 5, 2011 at 6:00 PM

    Gbp/Nzd seems to have formed a BUOB on the daily and the pair is now trading higher.The Eur/Nzd has also formed an indecision candle off a support 1.6734 that is now headed towards the BRN 7000.On my platform the Eur/Nzd hasn't reached the buy 1-2-3 support line.The Gbp/Chf is also trading lower,seems to me we will have to give it some time since today being a US holiday,the liquidity may be low and in my opinion might take some time before this moves start to pen out.

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