AUDNZD Long on Structure / Bullish Pennant
AUDNZD recently broke through a fairly significant piece of structure in the 1.0570s (see red circles on the chart). Until then this pair was in a strong bearish trend for months. This could be a reversal into a bullish trend, or it might just be a tease. Either way, since we're seeing higher lows and higher highs it's prudent to go with the trend.
Now this pair has seemingly formed a bullish pennant, but who knows how long it'll take to resume to the upside. On one hand you could enter @ market and have a pretty good risk/reward ratio by placing stops below 1.570, but on the other hand it's impossible to know what the market's going to do when it opens up; a gap in either direction could blow this trade out of the water.
If the market plays nice, though, the 1.0750s provide a nice first target, and the 1.0910s provide a nice second target based.
Now this pair has seemingly formed a bullish pennant, but who knows how long it'll take to resume to the upside. On one hand you could enter @ market and have a pretty good risk/reward ratio by placing stops below 1.570, but on the other hand it's impossible to know what the market's going to do when it opens up; a gap in either direction could blow this trade out of the water.
If the market plays nice, though, the 1.0750s provide a nice first target, and the 1.0910s provide a nice second target based.