07.06.202212:39 Forex Analysis & Reviews: Trading tips for AUD/NZD

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The Reserve Bank of Australia raised interest rates by 50 bp at once, surprising traders and analysts who only expected a 30-bp increase.

The event has caused the Aussie to rise against all currencies, including in the AUD/NZD pair, which once again hit a new yearly high. And considering that the pair already moved by 8,500 pips since 2021, traders can start a grid of sell limits in order to gain profit.

So, starting from the current prices, set up a grid of sell limits in an increment of 300-500 pips. Take profit on a breakout, either at 1 pip above the first order or after a 1,000 pip movement.

This strategy is called grid trading, which is usually used on cross rates. It involves holding positions that are significant in time and distance. For this reason, we recommend using swap-free accounts, not increasing the volumes in the grid (0.01 standard lot for every $ 1,000 of the deposit) and monitor price movements.

Good luck and have a nice day!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.