Short term
Trade view / 07 September 2016 at 8:44 GMT

AUDNZD breaks downside support

Director / PIA-First Limited
United Kingdom
Instrument: AUDNZD
Price target:
Market price:

The medium-term bias remains negative in AUDNZD and our negative bias has been refreshed by price action over the last 24 hours.

The bullish charge yesterday failed to maintain the 1.04 handle after stalling at 1.0430. This level has once again proved significant after previously being tagged as an all-time low way back in 2005.

Afternoon selling gained momentum after the failure and has continued overnight and into this morning, culminating in a break of the 1.0309 support and previous 15-month low (July 8, 2016).

Our short-term view is again negative, highlighting the double top formation and produces a good risk/reward opportunity

Management and risk description

Shorts should look to target the recent double top measured move target and the all-time low from April 2015. 


Entry: sell AUDNZD at current levels (1.0290).

Stop: a break back above 1.0430.

Target: 1.0090, 1.0000 and 0.9825.

Time horizon: one to four weeks.

Four-hour chart highlighting stop level:

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Source: Saxo Bank 

Daily chart showing double top projection:
Source: Saxo Bank 

Weekly chart:
Source: Saxo Bank  

— Edited by Michael McKenna

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Non-independent investment research disclaimer applies. Read more
SvsG SvsG
Hi Steve, do you recommend to increase my position at this level or do you have any updates.
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Good morning, unfortunately due to regulation i cannot directly advise you how you trade your account. I remain bearish on this cross and this rally currently feels reactive rather than reversal.
SvsG SvsG
Thanks Steve, I got it.
vyacheslav111 vyacheslav111
Hi , Stiv ! Your opinion on AUDNZD now ?
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Kiwi remains under pressure (also fundamental) after the formation of a morning star formation. Next resistance barrier is strong between 1.0707-1.0772. We have some bearish divergence on the 4-hour chart, so from a short term perspective, a failure and clear reversal candle in front of here would lead to a correction lower to 1.0529 and even 1.0428. However, a sustained drive through resistance earmarks a return to 1.1000 then 1.1250.


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