NZD/USD Long Trade with a RR 1:2

2 Nov 2023

The NZD/USD exchange rate is steadily advancing on Thursday, driven by an improved risk appetite fueled by speculations that the United States Federal Reserve (Fed) has finished raising interest rates. As a result, a decrease in US Treasury bond yields has weakened the US Dollar (USD), providing support for the pair. At the time of writing, the NZD/USD is trading at 0.5898, marking a gain of over 0.60%. Despite the Fed's decision to keep rates unchanged within the 5.25%-5.50% range, its chairman, Jerome Powell, made some comments that were largely overlooked by market participants. Consequently, traders in the interest rate futures markets are anticipating the first rate cut by the Fed to occur by June 2024, with odds currently at 67.80%, according to the CME FedWatch Tool.
I'm sharing the trade with the community in the pre-American session, entering at the level of 0.59 with a target of 0.6025 and a stop loss at the level of 0.5839, with a risk-reward ratio of 1:2. Let me know what you think, happy trading to everyone from Nicola, the CEO of Forex48 Trading Academy.