AUDNZD - Some Retracing To Do Before The Long
After seeing price in a clear bear trend since late January, we have finally seen a break & retest of the descending trend line, pushing price close to the daily resistance of 1.04500, creating a new higher high which of course should follow with a higher low. I have hi-lighted the triple spinning tops as this indicates price exhaustion and a reversal / retracement is due.
I favour a 38.2% Fibonacci retracement as there is strong support here and it is just above the monthly key level. If price however breaks the monthly key, I have the 61.8/78.6 zones hi-lighted for a further retracement and better entry but this move may be invalid by then, so I will be keeping a close eye on this pair. Once the daily resistance is broken, I see our target regions being met with further upside potential as I favour AUD long all-round.
There is expected NZD weakness so this also gives me more reason for a bullish AUD move, however be sure to use correct risk and money management as well as to watch out for certain volatile news events and the times as we can expect volatility this week with plentiful AUD news.
I favour a 38.2% Fibonacci retracement as there is strong support here and it is just above the monthly key level. If price however breaks the monthly key, I have the 61.8/78.6 zones hi-lighted for a further retracement and better entry but this move may be invalid by then, so I will be keeping a close eye on this pair. Once the daily resistance is broken, I see our target regions being met with further upside potential as I favour AUD long all-round.
There is expected NZD weakness so this also gives me more reason for a bullish AUD move, however be sure to use correct risk and money management as well as to watch out for certain volatile news events and the times as we can expect volatility this week with plentiful AUD news.