NZDUSD long-term analysis and forecast 2020
11 Dec 2020
Will the NZD get stronger in 2020? As expected and mentioned in the previous NZDUSD cross-pair analysis, we can see weekly and monthly highs being broken on the NZDUSD cross-pair. Regardless of China’s economic growth is slowing even more than expected from the coronavirus pandemic, reducing China’s trade and lowering demand for NZ imports. New Zealand’s economy has continued to slow, and the Reserve Bank of New Zealand cut interest rates earlier than expected, devaluing the NZD.
Forex fundamental analysis is not needed to place a trade using a supply and demand forex trading strategy. As you can see in NZDUSD weekly timeframe analysis shared below, a new strong imbalance has been created around 0.75. Will NZDUSD pull back to that imbalance any time soon? That’s what we are expecting. However, the kiwi dollar could keep on rallying even higher. As supply and demand traders, we must wait for the retracement. Unless you are a short-term Forex trader or trading breakouts, we must wait for lower prices or the creation of new imbalances.
You can use these NZDUSD imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves. This game has got a name, and it’s called the waiting game. We need to wait for the correct scenarios and setups to happen patiently. And wait for the price to pull back or dip into the price levels we want to trade, in our case. These price levels are made of supply and demand imbalances.
Join our supply and demand Forex trading course to learn how to use our supply and demand trading strategy.
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