For our non-subscribers, I would also like to share information about an opportunity to gain 450 pips from three easy trades! We provided this opportunity well ahead in advance to Platinum members. Later, we also sent a video about it to our newsletter subscribers via email.
What is going on with the Kiwi?
Milk prices were surprisingly stable in the most recent bi-weekly auction: the GDT Price Index rose by 0.6%. US indicators also experienced stability with CPI coming out exactly as expected. The reaction to Trump’s inauguration has not been seen in full. Kiwi/Dollar made a move towards 0.7230
News Events for the Kiwi
Credit Card Spending: Wednesday, 2:00
With retail sales published only on a quarterly basis, this gauge of plastic card usage provides a snapshot of consumer activity. Consumption increased by 4.1% in November.
CPI: Wednesday, 21:45
New Zealand publishes its official inflation data only once per quarter, making every release critical. The Consumer Price Index rose by 0.2% in Q3, a subdued rise. Slightly stronger inflation is on the cards now.
Graeme Wheeler talks: Wednesday, 23:00
The Governor of the RBNZ will speak shortly after the inflation data is released and will have an opportunity to respond to it. Interest rates are quite low in New Zealand, but striking the right balance between growth and house prices is tricky. Wheeler has a chance to steer the kiwi and will probably try to talk it down.
Platinum Analysts are Bearish on the Kiwi
The new word in town is “Trumponomics!”
The US faces a rather interesting scenario at the moment. The new President has pledged to push for tax cuts to boost economy growth and there is likely to be a significant tax reform. Let’s not forget that he might face some congressional delays and potential deadlock. Everything depends on his approach towards Congress. If tax cuts are agreed, there should be expectations of stronger growth and inflation pressures. Being that the economy is already running close to full employment, stronger growth could quickly put sudden upward pressure on inflation. In this environment, there would be a high risk that the FED would be forced to tighten policy at a faster pace to combat inflation.
Platinum’s Forex Trading Strategy on the Kiwi
We can see that Kiwi has broken the uptrend channel and has tested it a few times. The momentum is still Bearish, as per the Head and Shoulders pattern formation. We will favour short positions at the 38.2% Fib level @ 0.7245.
At Platinum, we always use stop losses in trading. All trades should have a stop loss not more than 40 pips as stated on the chart. Place alerts at these levels and watch the profitability in front of your eyes and we can have over 200 pips move in one day.
Sell and hold!
NZD/USD Trade Levels to watch
Utilising Platinum’s Forex Trading Strategies, our analysts suggest:
A) Short NZD/USD @ 0.7245 or nearest zone with 40 pips stop loss and target of 0.6860
B) Trade the trap zone with a 30 pip stop loss and an aim of 50 pips
If you have any questions about this Kiwi Trade, please do not hesitate to talk to one of our mentors/traders and we shall guide you step by step on trading the opportunity with finesse.
450 pips from three easy trades in a week!
1) GBP/USD trade
A trade which is a perfect example of trading the fundamentals correctly. It was a long trade we provided at the start of the week with the trade triggering on Tuesday, it hit the target of 300 pips with a 60 pip stop loss.
2) EUR/USD trade
A short looking to target parity and reached the target of 100 pips. The Euro had been stuck between 1.05 and 1.16 after its 3500-pip decline which started in May 2014. The pair managed to break through this range. Once again, with the perfect technical and fundamentals in sync, our members were able to benefit from this trade.
3) AUD/USD trade
A short trade with a 40 pip stop loss. The Aussie is clearly in a point of control, with the momentum still bearish. We provided this trade opportunity well in advance for our members to benefit.
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = A Perfect Trade
At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time using Platinum’s Forex Trading Strategies.
Learn how to produce thousands of pips in the coming months using forex trading strategies.
Watch a video to get a sneak peek on how the major events from the Trump Effect to the Eurozone Crisis will influence the markets and the scenarios we believe will play out to produce thousands of pips.
- Trading the 1st100 days of Trump.
- Trading the European Elections.
- How to Trade the Gold Run.
- Trading the Canadian Recession and a 3000 pip move.
- 1000+ pips move on the USD/JPY.
- 500 pip move on the Euro parity hit.
Have a beautiful day and an even wonderful week!
Live from the Platinum Trading Floor.
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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.