Short term
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

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.


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 is found here
Treve Treve
huge risk/reward, thanks Max
Prakash Prakash
I sold on 15273 :(
Prakash Prakash
I am looking for this ABCD pattern to complete ..Kindly help me to point out my mistake
Prakash Prakash
Oh sorry it's audnzd .. Extremely sorry
Patto Patto
I hope this works out for you Max - you've had quite a few goes at AUDNZD recently....
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.
Prakash Prakash
Agreed ...Nicely said ..
Max McKegg Max McKegg


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail