Last week, on June 9, CNBC reported that,
The New Zealand dollar took centre stage on Thursday, surging to a one-year high after the Reserve Bank of New Zealand kept interest rates unchanged, surprising some investors who had been betting on a rate cut.
Well, I suppose some investors were surprised, but this Capitalist wasn’t one of them.
Why? Because at the end of the prior week, my fundamental analysis method was flashing bullish signals for all NZD pairs. Here’s the one for NZD/CHF, which is the one I actually took.
Based on that, here’s one of the trades I took.
Of course, most signals don’t have such an immediate response. Some research I did recently shows that a look-ahead period of about 8 weeks shows the best correlations between the signals and the subsequent price performance. But I just had to grin when I read the reports of a “surprise” in the New Zealand rate decision. It wasn’t a surprise to me at all.
Anyway, this is the FA method that I’m covering in the upcoming e-book, if I ever get a chance to finish it given my current work schedule. So stay tuned for more on that, and as always…keep pipping up!