Based on the daily chart, the N100 stock index has grown today and the oil seems to be stabilizing preparing for growth.
Both of the two assets are anti-correlating to the EURNZD pair which I explained several times in both educational articles and pair-delegated ideas.
Furthermore, NZD did increase its interest rates. This would normally lead to NZD growth, hence EURNZD's drop.
However, the drop has not started yet and although it never has to, it just doesn't have to work like that single time, I do believe that the recent rally was driven by a lot of fear in the commodity markets as the following chart explains.
The commodity index CRB has just started dropping. Baltic Dry Index has been for some time, which is an average for shipping costs calculated every day.
I will be opening another short in this market at some point. I am waiting for price action now.
Both of the two assets are anti-correlating to the EURNZD pair which I explained several times in both educational articles and pair-delegated ideas.
Furthermore, NZD did increase its interest rates. This would normally lead to NZD growth, hence EURNZD's drop.
However, the drop has not started yet and although it never has to, it just doesn't have to work like that single time, I do believe that the recent rally was driven by a lot of fear in the commodity markets as the following chart explains.
The commodity index CRB has just started dropping. Baltic Dry Index has been for some time, which is an average for shipping costs calculated every day.
I will be opening another short in this market at some point. I am waiting for price action now.
Transaction en cours:
Entry was reached. I will leave this overnight.