Short term
/
Buy
Trade view / 10 April 2017 at 0:59 GMT

AUDNZD corrective reaction may be completed

Managing Director / Technical Research Limited
New Zealand
Instrument: AUDNZD
Price target: 1.0893
Market price: 1.0816
Background

Tomorrow will see the release of a regular business conditions and business confidence survey by National Australia Bank, followed up by a similar one from Westpac Bank on Wednesday. That same day, the New Zealand PMI for April will be released as well as NZ’s Food Price Index for March.
  
Thursday (effectively the last day of the trading week, with Easter ahead) is a far more “news” oriented day for the Australasians, with Australia releasing reports for consumer inflation expectations, financial stability review, employment changes (for March) and job participation rates.

Management and risk description

From a classical charting standpoint, AUDNZD displays a completed eight-month Inverse Head & Shoulders formation. Since reaching a peak of 1.1020 in mid-March, the AUDNZD cross has been pulling back (hard) and on Friday retested key Neckline support (refer daily chart below).

While this Neckline support holds, there is potential for AUDNZD to resume its recovery and rally toward 1.0900/1.0930 resistance, then retest last month’s 1.1020 high (en route to a pattern target of 1.1300 over the coming weeks) and presenting an excellent risk/reward.

Parameters

Entry: today AUDNZD is seen as a buy about the 1.0790 level.

Stop: just under 1.0760, initially.

Target: 50% at 1.0893 and 50% at 1.1288.

Time horizon: allow several weeks for both targets to be met.

AUDNZD daily chart (click to expand)
AUDNZD  daily chart
Source: ThomsonReuters  

AUDNZD weekly chart (click to expand)
AUDNZD  Weekly Chart

Source: ThomsonReuters. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

For more on forex click here

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here
3y
Treve Treve
huge risk/reward, thanks Max
3y
Prakash Prakash
I sold on 15273 :(
3y
Prakash Prakash
I am looking for this ABCD pattern to complete ..Kindly help me to point out my mistake
3y
Prakash Prakash
Oh sorry it's audnzd .. Extremely sorry
3y
Patto Patto
I hope this works out for you Max - you've had quite a few goes at AUDNZD recently....
3y
Max McKegg Max McKegg
Money management is always crucial Patto, to ensure that losses are minimised and stops raised to Break Even very quickly. Some small losses are never a problem, when playing for Big Risk/Reward potential.
3y
Prakash Prakash
Agreed ...Nicely said ..
3y
Max McKegg Max McKegg
thanks

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